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Here are answers to readers’ queries on the performance of their stock holdings.
What are the short- and long-term prospects for Hindustan Unilever and Indian Bank?
Shivakumar
Indian Bank (₹345.1): Following a medium-term downtrend from the November 2017 high of ₹428, the stock found support at ₹270 in March and reversed direction.
Since then, it has been in a short-term uptrend. But key resistance at ₹370 and 61.8 per cent Fibonacci retracement level of prior downtrend that coincides with this level has limited the stock’s up-move recently.
A strong upward breakthrough of ₹370 is required to alter the medium-term downtrend and take the stock higher to ₹400 and ₹430 levels in the medium to long term. On the other hand, a decisive plunge below the key support level of ₹300 will reinforce the bearish momentum and pull the stock down to the long-term significant support band between ₹250 and ₹260 levels.
Subsequent vital supports are at ₹230 and ₹200 levels. Those with a long-term perspective can stay invested with a stop-loss at ₹240 and can consider buying the stock in declines.
A strong rally above ₹430 can take it higher to ₹450 levels.
Hindustan Unilever (₹ 1,607.5): The stock of Hindustan Unilever is in a long-term uptrend. Both the medium as well as short-term trends are are also up for the stock.
Nevertheless, it now tests a key resistance in the ₹1,625-1,650 band.
The indicators and oscillators in the weekly as well as monthly charts feature in the oversold territory and display negative divergence, indicating the possibility of a corrective decline.
A fall below the immediate support level of ₹1,550 can drag the stock down to ₹1,500 levels. Further decline below ₹1,500 can pull the stock lower to ₹1,450 and ₹1,400.
As long as the stock trades above ₹1400, the medium-term uptrend will remain in place. Next supports are at ₹1,300 and ₹1,200. On the other hand, a conclusive rally beyond ₹1,650 can lift the stock up to ₹1,700 and ₹1,750 in the medium term.
What is the short- and medium-term outlook for the stock of JM Financial?
Vignesh Ga
JM Financial (₹119.3): After recording a new high at ₹190 in October 2017, the stock reversed direction. Since then, it has been in an intermediate-term downtrend.
Medium-term trend is also down for the stock. It encountered a key resistance at ₹140 in April and began to decline, resuming its downtrend. Both the short- and medium-term outlook is bearish for the stock.
The stock has tumbled 8 per cent breaching its immediate support level of ₹125 last week.
It can extend the downtrend and test next support at ₹115 in the coming week. A decisive fall below ₹115 will further reinforce the downtrend and pull the stock down to ₹105 and ₹100 levels in the medium term.
Nevertheless, a strong rally beyond ₹140 will alter the short-term downtrend and take the stock up to ₹150 and ₹158 in the medium term. Subsequent key resistances are placed at ₹170 and ₹185. Near-term key resistances are at ₹125 and ₹130.
Send your queries to techtrail@thehindu.co.in
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