Your Stock Portfolio: Repco Home Finance looks up

Repco Home Finance looks up

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

I have bought Repco Home Finance at ₹850. Kindly advice if i should hold or exit?

TVS Prakash Rao

Repco Home Finance (₹820.6): Since listing in April 2013, the stock of Repco Home Finance has been on a long-term uptrend. The stock found support at ₹560 during February and March this year, following a medium-term corrective fall. Subsequently, it resumed its uptrend and has been on a medium-term uptrend since March. However, the stock encountered a key resistance in the band between ₹850 and ₹870 in July. The stock continues to move sideways in the ₹800-870 with a negative bias. You have purchased at a key resistance zone and the stock has fallen 3.5 per cent from your purchase price.

As the upside is limited, you can consider exiting the stock and re-entering at lower levels. Else, hold the stock and accumulate on declines to ₹700 while maintaining a stop-loss at ₹675. A fall below ₹800 can threaten the uptrend and drag the stock down to ₹750, which is a key medium-term support. Further fall below ₹750 can pull the stock down to the significant long-term support at ₹700. This can provide base for the stock. For continuation of the uptrend, the stock needs to break through the immediate resistances at ₹850 and ₹870. Such a break can push the stock to ₹900 and to new highs in the medium term. Key supports below ₹700 are pegged at ₹630 and ₹550.

I hold some shares of Castrol. Should I hold or is it better to book profits?

Sudhin Bathija

Castrol India (₹474.7): The stock of Castrol consistently tested its significant long-term support at ₹365 between March and June this year. Eventually, it gained bullish momentum and resumed its long-term trend in late June. Since then, the stock has been on a medium-term uptrend. While trending up, it decisively broke a key long-term hurdle at ₹420 in late August. Though the stock has altered its prior downtrend and maintains its upward journey, a vital resistance at around ₹475 is limiting the upside now. Strong breakthrough of this resistance will reinforce the bullish momentum and take the stock up to ₹500. Inability to move beyond ₹475 will be cue for taking partial profits off the table.

Further break-out of the resistance can pave way for an upmove to ₹530 and ₹545. Investors with a long-term perspective can consider holding the stock with a stop-loss at ₹390. Decisive plunge below the vital base level at ₹400 will bring back selling pressure and drag the stock down to ₹380 and ₹365. Immediate supports are at ₹440 and ₹420. A tumble below ₹365 can be a threat and drag the stock to ₹335 and ₹315.

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