Your Stock Portfolio. Marico is making merry

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

I am holding Marico Limited. What is the medium to long term outlook for the stock?

Anil

Marico (₹351.5): Last week, the stock of Marico zoomed more than 9 per cent accompanied by good volumes. It decisively broke out of its sideways consolidation phase that prevailed for the past two-and-a-half months.

The stock is in an uptrend across all time frames — short, medium and long-term. It trades well above its 21- and 50-day moving averages.

The indicators and oscillators in the daily chart feature in the bullish zone. However, those in the weekly and monthly charts feature in the overbought territory, implying a possible trend reversal or corrective decline over the medium term.

The stock now tests its immediate key resistance at ₹360. A conclusive breakout of this level can take it northwards to ₹380 or even to ₹400 in the medium term. Significant supports to note are pegged at ₹334, ₹320 and ₹300. Long-term supports are at ₹240 and ₹200 levels.

Please give the long term target for Arvind Remedies and GSFC purchased at ₹46 and ₹73.

Eldho Mathew

Arvind Remedies (₹24.6): The stock of Arvind Remedies has a significant long-term resistance at ₹60. The stock tested this resistance and reversed lower in November 2013 and again in September 2014. The recent reversal has been sharp.

Since last September, the stock has been on an intermediate-term downtrend, which strengthened after a gap down fall in November 2014. The stock breached its long-term support at ₹30 last month, which has turned into a significant barrier. Currently, the stock tests its next key base around ₹25.

A strong fall below this level can pull the stock down to ₹20 and then to ₹16 in the medium term. Investors can consider exiting the stock on rallies.

Key resistances above ₹30 are at ₹36 and ₹40 levels. To alter the intermediate-term downtrend, the stock needs to decisively rally above ₹46.

Such a rally can push the stock higher to its significant long-term resistance level of ₹60.

Gujarat State Fertilizers & Chemicals (₹102.6): After a sharp rally in September and October 2014, the stock marked an all-time high of ₹124.5 and began to fall.

Since then, the stock has been on a medium-term downtrend. However, the key support around ₹99 has been providing base since early December. An emphatic fall below this level will strengthen the medium-term downtrend.

In such a scenario, the stock can decline to the subsequent support band between ₹81 and ₹84. Such a fall will wipe off your profits, and hence consider taking profits off the table at this juncture.

The long-term trend is up and will remain in place as long as the stock trades above ₹81. Conclusive fall below this level will mar this trend and pull it further down to ₹75 or ₹65 in the long term. Key resistances are pegged at ₹110, ₹120 and ₹125 for the stock.

Please give your medium and long-term outlook on Siemens.

Singhasan

Siemens (₹963): Since May 2014, the stock has been on an intermediate-term sideways consolidation phase in the band between ₹800 and ₹1,000.

After testing the lower boundary of this range in mid-December, the stock has been trending up.

The stock surged 5.6 per cent accompanied by good volumes last week, strengthening this uptrend.

The current rally can re-test the upper boundary at ₹1,000 in the short term. A decisive rally above the ₹1,000-mark can take the stock higher to ₹1,050 and then to ₹1,125 in the short to medium term.

Conversely, the inability to break this level can pull the stock down to the lower boundary at ₹800. Subsequent supports are at ₹700 and ₹650 levels.

Send your queries to techtrail@thehindu.co.in