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Neutral signals
Here are answers to readers’ queries on the performance of their stock holdings.
Please give the technical outlook for India Nippon Electricals
R Mahesh
India Nippon Electricals (₹465.8): The stock is in an uptrend across all time frames — long, medium and short term. Nevertheless, the stock encountered significant resistance at ₹500 in late December 2014 and has been moving sideways.
A plunge below ₹440 will alter the short-term uptrend and pull the stock down to ₹400 and then to ₹380 levels.
As long as the stock hovers above the support band between ₹330 and ₹340, its medium-term uptrend will remain in place.
But a fall below this support zone will pull the stock down to its vital long-term trend-deciding level of ₹300. Investors with a long-term perspective can stay invested with a stop-loss at ₹300. Target on a break above of ₹500 is ₹600.
Kindly give the outlook for Greaves Cotton.
Iqbal Ahmed Khan
Greaves Cotton (₹153.9): In February 2014, the stock found support at its long-term base around ₹60 and continued its primary uptrend. Since then, it has been on an intermediate-term uptrend.
The stock is also on an uptrend across all time frames — long, medium and short term. On Friday, it surged 4 per cent, backed by above average volumes, breaching an immediate resistance at ₹151, and registered new high.
It can extend its rally and touch the price target of ₹165 over the short and medium term. On the downside, the stock has key supports at ₹151 and then at ₹140 levels.
A strong fall below the second support will alter the short-term bullish outlook and pull the stock down to ₹125. Subsequent supports are at ₹115 and ₹105.
Please give your medium and long-term outlook on Alstom India.
Singhasan
Alstom India (₹634.1): The stock of Alstom India continues to be in a long-term downtrend. After retracing 61.8 per cent fibonacci retracement level of the prior downtrend, the stock encountered a key long-term resistance at ₹650 recently.
The price action and indicators in the weekly chart signal a trend reversal. The inability to breach the resistance at ₹650 will indicate that the stock is losing its short-term bullish momentum.
Investors sitting on profits can consider taking it off the table at this juncture. A fall below the immediate key support at ₹575 will indicate a trend reversal.
A fall to the level of ₹500 and then to ₹460 cannot be ruled out over a medium to long-term horizon. On the upside though, a conclusive breakthrough of ₹650 can push the stock higher to ₹700 and then to ₹750 in the long term.
Send your queries to techtrail@thehindu.co.in
Send your queries to techtrail@thehindu.co.in
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