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Here are answers to readers’ queries on the performance of their stock holdings.
I have purchased GSFC at ₹107. What are the short and medium-term support and resistance levels.
Jitu Jain
Gujarat State Fertilizers & Chemicals (₹111.7): After taking support at around ₹60 in February 2016, the stock of GSFC bottomed out and has been on a long-term uptrend, forming higher peaks and troughs since then.
The stock has been on a medium-term uptrend since it took support at around ₹80 in November 2016.
However, it encountered a key long-term resistance in the band between ₹120 and ₹124 in mid-January and started declining. The stock now tests a key support at ₹108 which has been providing base over the past two weeks.
Conclusive fall below this level will bring back selling pressure and pull the stock down to ₹103 and then to ₹100.
Next key supports are placed at ₹95 and ₹90. The long-term uptrend will be intact as long as it trends above ₹90.
On the other hand, the stock needs to emphatically breakthrough the significant long-term resistance band between ₹120 and ₹124 to reinforce the uptrend and take it to new highs. Resistances beyond ₹124 are at ₹130 and ₹140 levels.
I bought have shares of Noida Toll at ₹21 per share.
Kindly advise if it would be prudent to book losses?
B M Lal
Noida Toll Bridge Company (₹12.7): The stock is a downtrend across time-frames. There are no signs of trend reversal. Exit the stock in rallies.
Key immediate supports are at ₹12 and ₹11.5. Resistances are at ₹13.6, ₹15 and ₹16.
What are the medium to long-term target for the stock of Advanced Enzymes?
Sadheesh Kumar
Advanced Enzyme Technologies (₹1,813.3): The stock of Advanced Enzyme fell almost 2 per cent in the previous week, resuming its intermediate-term downtrend. The stock has been on an intermediate-term downtrend since registering a new high at ₹2,377 in October 2016. Medium-term trend is also down for the stock. However, it currently tests a key support at ₹1,800.
A decisive downward breakthrough of this base level will strengthen the downtrend and pull the stock down to ₹1,750 and then to ₹1,650 in the medium term. Subsequent key supports are placed at ₹1,550 and ₹1,470.
Significant resistances are placed at ₹1,900 and ₹2,000. The stock needs to conclusively rally beyond the next key resistance level as well as trend-deciding level of ₹2,050 to alter the intermediate-term downtrend and take the stock higher to ₹2,200 and then to ₹2,350 in the long term.
Investors with a long-term perspective can buy above ₹1,900 levels with a stop-loss placed at ₹1,730.
Send your queries to techtrail@thehindu.co.in
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