Your Stock Portfolio

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

I bought the stocks of Trident at ₹73 and also Filatex India at ₹115. What is the outlook?

Rajendran N

Trident (₹82.5): The long-term trend is up for Trident. However, after marking an all-time high of ₹92.3 in early May 2017, the stock started descending, witnessing a corrective decline. Since late March, the stock has been on a sideways consolidation phase in the wide range between ₹73 and ₹90. In early July, the stock took support at around ₹75 and started moving up.

It tests near-term resistance at ₹85. Strong break above this level will pave way for an up-move to ₹90. An emphatic break above ₹90 is required to strengthen the stock's long-term uptrend and take it northward to ₹100 in the medium term. You can stay invested with a stop-loss at ₹78. Consider exiting the stock if the stop-loss is triggered, as the stock can decline to test the lower boundary of the sideways movement at ₹73. Strong decline below ₹67 will alter the stock's intermediate-term uptrend and pull it down to ₹60 or even to ₹55 levels.

Filatex India (₹149.7): Following a strong break above a key long-term resistance level of ₹85 in March 2017, the stock of Filatex India has continued to trend upwards. Nevertheless, it encountered a key resistance at around ₹150 in early April and started to move sideways in a narrow ₹130-150 range. Though the stock advanced 3.6 per cent last week and tests the upper boundary at ₹150, selling pressure is evident at higher levels.

Hence, you can consider booking partial profits now and stay invested with a stop-loss at ₹140. Strong break above can push the stock higher to ₹165 and then to ₹170 levels in the short to medium term. On the other hand, a plunge below the lower boundary of ₹130 can pull the stock down to ₹120 and then to ₹110 levels. A decisive tumble below ₹110 can pull the stock down to ₹90 or ₹85 levels in the medium term.

What is the technical outlook for SML ISUZU?

J D Vengurlekar, Karnam Prabhakar Rao

SML ISUZU (₹1,199.6): Strong resistance in the ₹1,350-1,400 band has been capping the stock of SML ISUZU since August 2016. The stock tested this barrier this April and began to decline. Since then, the stock has been on a medium-term downtrend. But it is now poised above a key medium-term support level of ₹1170. An emphatic slump below this base can strengthen the downtrend and pull the stock down to ₹1100 and then to ₹1020 levels in the medium term.

As long as the stock trades above the long-term support range between ₹1,000 and ₹1,020, the long-term uptrend will remain in place. Investors with a long-term view can stay invested with a long-term stop-loss at ₹980 levels. An upward reversal from the current support level or ₹1,100 can take the stock higher to ₹1,300. Further rally can push the stock to test the key resistance band between ₹1,350 and ₹1,400 in the long run. Targets above ₹1,400 are ₹1,450 and ₹1,500.

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