Your Stock Portfolio: Cox and Kings back in action

Here are answers to readers’ queries on the performance of their stock holdings.

Please review the stock of Cox and Kings. Is your view on it still a buy? Has the stop loss been hit?

Sudhin

Cox and Kings (₹227.1) : The stock of Cox and Kings has been on an intermediate-term downtrend since registering a new high at ₹366 in September 2014.

However, the stock found support at around ₹200 in September 2015 and halted the downtrend.

In recent times, it has retested this support, which was our earlier stop-loss, and bounced up after recording a 52-week low at ₹187 on January 21. The stock has not closed below ₹200 on a weekly basis, which is positive.

Witnessing buying interest, the stock jumped 9.5 per cent last week. Nevertheless, it faces a key resistance ahead at ₹235. A strong breakthrough of this resistance can take the stock higher to the next significant hurdle in the ₹270-₹280 band in the medium term.

Investors with a medium as well as long-term perspective can buy the stock on a decisive rally above ₹235, while maintaining a stop-loss at around ₹200.

On an emphatic breach of ₹280, the stock can extend its up-move to ₹300 and then to ₹330 in the long run. Inability to move past ₹280 will keep the stock consolidating in a wide range between ₹200 and ₹280.

Conversely, a tumble and weekly close below ₹200 can bring back selling pressure and drag it down to ₹155 and ₹125 in the long term.

I purchased shares of Indiabulls Real Estate at ₹82. Kindly suggest what I have to do.

Madhu

Indiabulls Real Estate (₹55.3): Ever since recording an all-time low at ₹40 in December 2011, the stock has been moving sideways broadly in the range between ₹40 and ₹90.

Within this band, the stock has been struggling to move past the key resistance at ₹70 since August 2015.

An emphatic rally above the resistance level of ₹60, which the stock faces now, can take it higher to ₹70. But, the stock needs to break through ₹70 levels to reinforce bullish momentum and take it upwards to ₹85 or even to ₹90.

Key resistance above ₹90 is at ₹110. You can consider averaging the stock above ₹60 while maintaining a stop-loss at ₹50. On the downside, conclusive fall below the immediate support at ₹50 can drag the stock down to ₹40 in the medium term.

I had bought shares of United Spirits at ₹3,457. Can I average out more at the current price?

Rajeev

United Spirits (₹2,488.1): The stock’s long-term uptrend, that started in the early 2012 low of ₹450, came to a halt in March 2015, recording a new high at ₹4,040. Subsequently, the stock reversed direction and has been on an intermediate-term downtrend since then.

This downtrend got strengthened in early January as the stock decisively breached a key support at ₹3,000 and extended its decline. It plunged almost 10 per cent in the prior week.

But it has a significant support as well as long-term trend deciding level in the band between ₹2,200 and ₹2,300. The stock could arrest its down in this support zone as it has reversed higher from this zone. Such an upward reversal can keep the uptrend in place and take the stock higher to ₹3,000. You can consider averaging the stock on such a reversal with a stop-loss at ₹2,160. An emphatic breakout of ₹3,000 can take the stock up to ₹3,300 and ₹3,600 in the long term. But a decisive fall below ₹2,200 can mar the uptrend and drag the stock to ₹2,000 or even ₹1,750. Avoid taking fresh positions on such a decline.

What are the prospects for Network 18? I had bought the shares at ₹56. Should I hold or sell it?

Navendu Sharma

Network 18 Media & Investments (₹48): In May 2014, the stock conclusively broke through a key resistance at ₹45, which has later turned into a significant support. Since then, the stock has been on a sideways consolidation phase in the ₹45- ₹70 range. Recently, the stock tested the lower boundary and is trying to move up. Immediate resistance is at ₹53.

You can hold the stock with a stop-loss at ₹44 and exit at around ₹60 or ₹70 in the long run. However, an emphatic tumble below ₹45 will strengthen the bearish momentum and drag the stock to ₹40 or even to ₹30. Exit on such a decline.

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