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Here are answers to readers’ queries on the performance of their stock holdings.
What is the outlook for Network 18 Media and VLS Finance bought at ₹62 and ₹75 per share respectively.
R N Alamelu
Network 18 Media & Investments (₹34.7): The stock of Network 18 has been on a downtrend across all-time frames. In 2014, the stock tested the key resistance at ₹70 and failed to breach it. Subsequently, it resumed its downtrend and has been on an intermediate-term downtrend. In September 2016, significant resistance at around ₹48 limited the stock's upside. Since then, it has been on a medium-term downtrend. Currently, the stock tests an immediate support at ₹34.5. Strong plunge below this base level can pull the stock down to ₹31 and further to ₹26 in the medium term.
You could consider exiting the stock. Immediate resistance at ₹39 needs to be breached for the stock to strengthen the short-term bullish momentum and go up to ₹42, ₹45 and ₹48 levels in the medium term.
VLS Finance (₹60.4): Following a sharp fall in November 2016, the stock of VLS Finance found support at around ₹45. This base level provided support in late December as well. The stock has been on a short-term uptrend since then. It now tests a key resistance at ₹65. A decisive break-out of this resistance level can reinforce the uptrend and take the stock higher to ₹70 initially and then to ₹78 in the medium term. Next key resistances are placed at ₹83 and ₹86. Strong rally beyond these hurdles can take the stock higher to ₹90 and ₹100 in the long term. You can hold the stock with a stop-loss at ₹54. An emphatic plunge below the key support level of ₹54 will mar the short-term uptrend and pull the stock down to ₹50 and ₹45 levels.
Please share your views on the stock of ITI.
Shashi Shankar
ITI (₹49.1): The stock of ITI conclusively breached a key long-term resistance level of ₹34 in early December 2016 and extended its rally. However, it encountered a significant long-term resistance at ₹54 and started to move sideways in the wide range between ₹41 and ₹54. The stock now faces a key barrier at ₹54, which is the upper boundary of the sideways movement. Strong break-out this resistance will strengthen the uptrend and take the stock northwards to ₹60 and then to ₹67 in the medium to long term. But inability to surpass the upper boundary can keep the stock consolidating sideways. On the other hand, if the stock slumps below the lower boundary of ₹41, it can move lower to ₹37 and then to ₹34 in the medium term. Next key supports are at ₹30 and ₹25.
Send your queries to techtrail@thehindu.co.in
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