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

Can you please advise me on the support and resistance levels for Page Industries which was bought at ₹6,200? The stock has been consistently making lower top and bottom in the last eight months.

Prakash

Page Industries (₹12,119.2): The stock has been on a long-term uptrend since the January 2009 low at ₹300. This uptrend got strengthened and accelerated during 2013 and 2014. However, it came to a halt after marking an all-time high at ₹16,995 in June 2015.

Subsequently, the stock changed direction, triggered by negative divergence in the weekly and monthly relative strength index. Since then it has been forming successive lower peaks and troughs, known as downtrend. This intermediate-term downtrend will remain in place as long as the stock trades below the key resistance level and 50 per cent Fibonacci retracement level of the downtrend at around ₹13,500.

The stock found support, recording a 52-week low at ₹9,770 in late February this year, and has been trending upwards.

There is an increase in volume since then. Last week, the stock surged 6.5 per cent, decisively breaking an immediate resistance at ₹11,500.

Next resistances are at ₹12,700 and ₹13,500. Strong breakthrough of ₹13,500 can take the stock higher to ₹14,500 and then to ₹16,000 in the medium to long term.

Investors with a long-term perspective can hold the stock with a stop-loss at ₹9,800.

On the other hand, the stock has a significant support in the band between ₹9,800 and ₹10,000.

Conclusive downward break of this base zone can strengthen the downtrend and drag it down to ₹8,700 initially and then to ₹8,000 in the medium term. The long-term uptrend will be marred on a decisive fall below the trend-deciding level at ₹6,700.

I hold shares of ICICI Bank at average cost of ₹273. Please advise if I can buy and average more at current levels?

Harvinder S Bhatia

ICICI Bank (₹238.6): The stock of ICICI Bank has been on an intermediate-term downtrend since registering a new high at ₹393 in January 2015.

Nevertheless, it found support at ₹180 in February and reversed direction.

Over the past one month, the stock has been on a short-term uptrend. But it faces a significant long-term resistance ahead at ₹250.

A decisive break-out of this resistance will pave way for an up move to ₹270 or ₹290 levels.

To alter the downtrend, the stock needs to conclusively breakthrough the next key long-term resistance at ₹290.

Such a rally can take the stock northwards to ₹320 and then to ₹350 in the long run.

Investors with a long-term horizon can stay invested and accumulate on declines with a stop-loss at ₹180 and exit at around ₹320.

Inability to move past ₹250 will keep the stock moving sideways in a wide range between ₹200 and ₹250 for a while. Key supports below ₹200 are pegged at ₹180 and ₹160.

I am a long-term investor. Can I buy Asian Paints at these levels or wait for a correction. If so, at what levels can I buy?

KP Pancholi

Asian Paints (₹869.9): One leg of the long-term uptrend of Asian Paints came to a halt when it marked a high at ₹922 in January 2015. The stock retested this peak in August 2015 and reversed direction after recoding a new life-time high at ₹924.

Since then, the key resistance in the band between ₹900 and ₹924 has been limiting the stock from further rally. It has been on a sideways consolidation in the range between 800 and ₹924.

An upside breakthrough of this range will resume the primary uptrend and can take the stock higher to ₹1,000 in the medium to long term. Conversely, a downside breach of ₹800 can pull the stock down to ₹700 or ₹670 in the same period. Next key supports are placed at ₹640 and ₹600. Investors with a long-term perspective can make use of declines to buy the stock with a stop-loss at ₹650. Strong fall below ₹600 will mitigate the uptrend and drag the stock down to 550 or even to ₹500 levels.

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