Here are some answers to readers’ queries on the performance of their stock holdings.
Please provide the medium term forecast for Mcleod Russel.
But, the stock is now testing its 50 and 200-day moving average and is trading at a crucial short-term trend deciding level. In case of a strong fall below ₹267, the stock can decline to ₹250 in the forthcoming weeks.
Further decline below ₹250 will strengthen the stock's intermediate-term downtrend that has been in place from February 2013 peak of ₹386. In that scenario, the stock can decline to ₹218 or even to ₹200 in the medium to long-term. Investors can exit the stock on a strong fall below ₹250 and re-enter at lower levels.
The stock has a significant long-term support in the band between ₹180 and ₹200 which can act as a strong foothold in the long run. To overturn the intermediate-term downtrend, the stock needs to move above ₹310 while the immediate hurdle is at ₹290. Strong break-out of ₹310 can be a buying opportunity and will pave the way for an up-move to ₹340.
I purchased PNB Gilts at Rs.18.60. What is the future of the stock?
Hitesh Dumaswala
PNB Gilts (₹19.5): After moving sideways in a narrow band between ₹16 and ₹18, PNB Gilts in late April moved to another range between ₹18 and ₹22. The stock is very volatile and range bound for the long-term. Moreover, making good returns in non-trending stocks like this is not possible.
Hence, it is better to exit this stock. Look for trending stocks which moves in a direction steadily. An emphatic breakthrough of ₹22 can push the stock northwards to ₹26 or even to ₹29 in the long-term. But, a fall below ₹16 will drag the stock down to ₹14 or ₹12.
Please let me know the technical prospects of eClrex Services.
Vageesh
eClerx Services (₹1,214): eClerx Services (eClerx) has been in a long-term uptrend since taking support at ₹600 in May 2013. However, since February this year, the stock started to decline and has been moving sideways between ₹1,050 and ₹1,300. A key resistance band between ₹1,280 and ₹1,300 is preventing the stock from making a rally to new highs. Strong breach of this hurdle will take the stock to ₹1,350 and then to ₹1400 in the medium-term. Important supports are placed at ₹1,130 and then at ₹1,050. A conclusive fall below ₹1,050 will alter the stock's medium-term trend downwards and pull it down to ₹900 or even to ₹800 in the medium to intermediate-term. In that case, investors can exit the stock and buy at lower levels. Next important support below ₹800 is at ₹700.
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