Comments
Here are answers to readers’ queries on the performance of their stock holdings.
What is the technical outlook for JSW steel for a time span of three months?
RT Rajasekaran
JSW Steel (₹347): The stock of JSW Steel has been on a long-term uptrend since late 2015. Intermediate-term trend is also up. However, the stock reversed direction after recording a new high at ₹427 in mid-September 2018. Since then, it has been on a medium-term downtrend.
The stock currently tests a key medium-term support at ₹340. A strong break below this support can drag the stock down to ₹300. A further fall below the next support at ₹300 can pull it lower to ₹270 levels over the short to medium term. The long-term uptrend will remain intact as long as the stock trades above the significant support and trend-deciding level of ₹250.
Investors with a long-term perspective can hold the stock with a stop-loss at ₹235. A break above the immediate resistance at ₹380 will strength in the primary uptrend and take it up to ₹400 and ₹430 in the long run.
The stock now tests a crucial support, and the risk-reward is not favourable to take long positions. You can wait for a while and buy the stock at lower levels with a stop-loss at ₹290 levels. An upward reversal from the key support at ₹300 could keep it consolidating sideways in the ₹300-340 band.
What is the outlook for Granules India share bought at ₹117?
Sudhakar Reddy
Granules India (₹105.2): The significant long-term support in the ₹70-75 band arrested the stock’s decline in June 2018. Subsequently, it changed direction and has been in a medium-term uptrend since then. After taking support at ₹90, the stock continued to trend up. It now tests a short-term resistance and 200-day moving average at around ₹105.
A decisive break above this level will strengthen the uptrend and take the stock up to ₹112 and ₹122 levels in the short to medium term. An emphatic breakthrough of ₹122 will reinforce the bullish momentum and take the stock up to ₹135 and ₹150 in the long term.
Investors with a long-term perspective can buy the stock on a decisive break above the current resistance with a stop-loss at ₹88. On the other hand, a plunge below the key support at ₹90 will bring selling pressure and drag the stock down to ₹85 and ₹80 in the medium term.
I have bought shares of PC Jeweller at ₹145. Should I average, hold or book loss?
Krishna V Hegde
PC Jeweller (₹91.8): Since recording a 52-week low at ₹46.9 on October 26, 2018, the stock of PC Jeweller has been in the limelight and moving up. On Friday, it jumped 10 per cent with good volume, strengthening the near-term uptrend.
But the stock faces a key resistance ahead at 100; a decisive break above this level will underpin the bullish momentum and take it to ₹120 and ₹140-150 band in the medium term. You can buy in dips and average the stock with a stop-loss at ₹77. Key supports are at ₹80 and ₹70.
Send your queries to techtrail@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.