Here are answers to readers’ queries on the performance of their stock holdings.
What are the short- and long-term prospects for the stocks of REC and Tata Elxsi?
Nandkishor Lele
This band cushioned the stock in September and December 2018.
Subsequently, the stock changed direction and has been in a medium-term uptrend since taking support from the above-mentioned band.
In December, the stock breached key 50- and 200-day moving averages and hovers well above them. Short-term trend is also up for the stock. Currently, the stock tests a key resistance in the ₹150-155 band.
An emphatic break above this resistance band will underpin the uptrend and take the stock up to ₹165 and ₹185 over the medium term.
A strong rally beyond ₹185 will alter the intermediate-term downtrend and push the stock up to ₹200 and ₹220 in the long run.
Those with a long-term perspective can stay invested with a long-term stop-loss at ₹110. But key supports are at ₹130 and ₹120.
An emphatic fall below ₹130 will alter the short-term uptrend and drag the stock down to ₹120. The stock has a significant long-term support in the ₹115-120 band.
A conclusive fall below ₹115 will alter the medium-term uptrend and drag the stock down to ₹100 and ₹90 in the long term.
Tata Elxsi (₹961.9): After recording a new high at ₹1,491 in July 2018, the stock reversed direction and began to decline. Since then, it has been in an intermediate-term downtrend.
It fell sharply in September and October 2018, but found support at ₹826 in March 2019 and began to trend up. It has been in a short-term uptrend since then.
However, the stock lacks strength to break above the key resistance level of ₹1,000.
Such a break will strengthen the uptrend and take the stock up to ₹1,080.
A further rally beyond ₹1,080 will push the stock up to ₹1,150 and ₹1,250 levels.
A fall below ₹900 will drag the stock down to ₹850 or ₹800.
I am a long term investor; I bought the stock of Inox Wind at an average of ₹150. What is the future?
Ramesh Kumar
Inox Wind (₹69): Across all time-frames — long, medium and short — the stock is in a downtrend. In the near term, it is range-bound between ₹64 and ₹72. A strong break below ₹64 can drag the stock down to ₹57. On the upside, a strong rally beyond ₹80 is needed to alter the short-term downtrend and take the stock up to ₹90 and ₹100.
To alter the medium-term downtrend, it needs to decisively move beyond ₹110 resistance level.
Such a break can take it higher to ₹130 and ₹150 levels. You can consider averaging the stock on a strong rally above ₹80 with a stop-loss at ₹67.
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