Comments
Here are answers to readers’ queries on the performance of their stock holdings.
I am a long-term investor and have purchased shares in Bajaj Electricals and KNR Constructions. What is the technical outlook for these two companies?
Ramprasad V
Bajaj Electricals (₹383.4): After a strong rally in 2017 and early 2018, the stock of Bajaj Electricals registered a new high at ₹706 in April 2018. The stock subsequently changed direction and has been on an intermediate-term downtrend since then. The stock tumbled sharply this July breaking below a key long-term support in the band between ₹425 and ₹440. However, it found support at the next crucial long-term base at ₹340 in late July and has been in a medium-term sideways movement in the ₹340-425 range. The stock can continue to move sideways for a while. Investors with a long-term perspective can stay invested with a stop-loss at ₹315.
A decisive break above the upper boundary at ₹425 and the resistance at ₹440 will alter the downtrend and take the stock up to ₹470 and ₹500 over the medium term. Subsequent resistances are placed at ₹520, ₹550 and ₹580 levels. To alter the intermediate-term downtrend, the stock needs to conclusively break above the significant long-term resistance at ₹580. Such a break can push the stock higher to ₹600 and then to ₹640 levels in the long run. Key supports below ₹340 are at ₹320 and ₹300.
KNR Constructions (₹225.8): Since recording a 52-week high at ₹303 in late May 2019, the stock has been in a medium-term downtrend. But it found support at ₹210 in late August and has been in a short-term sideways movement. The key support at around ₹210 is providing the base. A strong rally above the immediate resistance level of ₹240 can alter the sideways movement and take the stock up to ₹250 and ₹270 levels. Only a clear break above ₹270 will change the downtrend and take the stock higher to ₹290 and ₹303 over the medium term.
On the other hand, a decisive fall below the immediate support level of ₹210 will strengthen the downtrend and drag the stock lower to ₹190. Subsequent key supports are pegged at ₹180 and ₹165 levels.
What are the medium-term prospects of Strides Pharma Science purchased at ₹475.
Sudhakar Reddy
Strides Pharma Science (₹324.5): Ever since recording a new high at ₹1,371 in late 2015, the stock has been in a long-term downtrend. Both medium and short-term trends are down. However, the stock appears to have found support, registering a 52-week low at ₹288 last week and began to witness a corrective rally. After testing a significant support in the ₹290-300 zone last week, the stock gained almost 5 per cent with good volume. It has an immediate resistance at ₹350.
To alter the short-term downtrend, the stock needs to conclusively move beyond ₹370. In such a scenario, it can trend up to ₹400 and ₹435 in the medium term. A further rally above ₹435 will alter the medium-term downtrend and take the stock up to ₹475 and ₹500. Next resistances are at ₹520 and ₹550 levels. You can consider averaging with a stop-loss at ₹285. But a fall below the immediate support zone can drag the stock down to ₹270 and ₹250 levels.
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.