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

I hold shares of Punjab National Bank purchased at ₹120. Please advise what to do?

Prashant Shah, Y Suneeta

Punjab National Bank (₹83): The stock Punjab National Bank found support at ₹70 in late February and appears to be changing its direction. Last week, the stock has gained 14.5 per cent with good volumes and has surpassed its 21-day moving average.

This reversal is backed by positive divergence in the daily relative strength index and moving average convergence divergence. However, both long and medium-term trends continue to be down for the stock.

To alter the medium-term uptrend, the stock needs to breach the key resistance at ₹110 levels. Such a break can take the stock northward to ₹130 and ₹145 levels.

The stock has immediate resistances at ₹87 and ₹100. You can consider averaging the stock at the current levels with a stop-loss at ₹68 and exit at the medium-term key resistance levels.

Investors with a long-term perspective can also consider buying the stock at current levels while maintaining a stop-loss at ₹68. On the other hand, a decisive slump below the significant support level of ₹70 can reinforce the long-term downtrend and drag the stock down to ₹62.

The long-term downtrend will stay in place as long as the stock trades below the key resistance level of ₹180.

I bought shares of DCB Bank at ₹130 and some more at ₹73. What should I do now? Buy more to average the cost or exit? What are the prospects of DCB Bank recovering in 2016?

Prasannakumar

DCB Bank (₹77.9): The long-term uptrend in the stock of DCB Bank came to an end in July 2015 at ₹150. Testing the key resistance in the band between ₹145 and ₹150, the stock reversed down in October and plummeted steeply.

Since then, it has been on an intermediate-term downtrend. The stock took support at ₹70 in mid-January and has been in a medium-term sideways consolidation move. You can consider averaging at current levels with a stop-loss at ₹67. Strong breakthrough of the immediate resistance at ₹85 can push the stock up to ₹100 and then to ₹120 in the medium term.

Consider taking profits off the table at around ₹120 levels. Only a strong rally above ₹120 will alter the intermediate-term downtrend and take the stock higher to ₹135 or even to ₹150. However, downward break of the key support level of ₹70 can pull the stock down to ₹60 and then to ₹50 in the medium term.

I have shares of Nestle at an average price of ₹6,250. What is the strategy to hold for at least another year?

Rakesh Tahilramani

Nestle India (₹5,283): The stock of Nestle India has been on an intermediate-term downtrend, after registering a 52-week high at ₹7,499 in March 2015. However, it found base at its long-term support at ₹5,000 in mid-February 2016 and has been moving higher. There is an increase in volume over the past two weeks, which is a positive sign. You can wait for the stock to consolidate around ₹5,000 for some more time and then consider averaging it while maintaining a stop-loss at ₹4,900.

The stock can encounter resistance at ₹5,700 which is a crucial level from a medium-term perspective. Only a decisive break-out of this level can push the stock higher to ₹6,000 and then to ₹6,600 in the medium to long term.

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