Here are answers to readers’ queries on the performance of their stock holdings.
I have shares of Aban Offshore and Quick Heal Technologies. What is the outlook for these stocks?
Sivakumar
After entering the deep oversold territory in mid-February, the stock changed direction. While trending up, it decisively surpassed the 21- and 50-day moving averages in the previous week and hovers well above them.
That said, the stock now tests a key resistance at ₹75. A conclusive break above this barrier will strengthen the short-term uptrend and take the stock up to ₹88 and ₹100 in the coming weeks.
But to alter the medium-term downtrend, the stock needs to decisively break the ₹100 level. Such a break will pave way for an up-move to ₹115 and ₹130 over the medium term. Significant resistances are at ₹160 and ₹190 levels.
Investors with a long-term perspective can buy the stock in declines and remain invested with a stop-loss at ₹57. On the downside, a strong fall below the key support of ₹53 will reinforce the long-term downtrend and drag the stock down to ₹47 in the medium term. Investors with a medium-term perspective can also buy with a stop-loss at ₹64.
A conclusive rally above this level will strengthen the up-move and take the stock higher to ₹260 and ₹290 over the medium term. To alter the long-term downtrend that has been in place from the January 2018 high of ₹403, the stock needs to decisively break above the vital resistance level of ₹290. Such a break-out can take the stock up to the long-term price targets of ₹320 and ₹350 levels.
Conversely, a downward reversal from the current levels will keep the stock in a sideways consolidation mode in the wide range between ₹172 and ₹230 for a while. Immediate supports are at ₹205 and ₹185 levels. Investors with a long-term perspective can stay invested with a stop-loss at the level of ₹170.
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