Here are the answers to readers’ queries on the performance of their stock holdings.
I want to invest in Ashok Leyland. Please let me know the technicals of the stock for medium-to-long term.
Rajesh Reddy
A strong break above this level is needed to strengthen the uptrend that commenced from the March low of ₹33.7. Such a breakthrough can pave the way for an up-move to ₹64 and then to ₹68 in the coming weeks.
The stock has significant medium-term resistance between ₹68 and ₹70; the 200-day moving average is also poised around this band. A conclusive breach of this barrier will reinforce the bullish momentum and take the stock higher to ₹75 and ₹80 over the medium term.
On the other hand, if the stock falls below the immediate base level of ₹49, it can pull lower to ₹44. A further break below this level can drag it down to ₹40. The next support is in the band between ₹33 and ₹45. You can consider buying the stock in declines with a stop-loss at ₹38.
Is it the right time to buy Bank of India for averaging; it is trading at ₹35.
Pradeep Kumar
Bank of India (₹35.2): The stock has been in a narrow sideways consolidation phase in the band between ₹30 and ₹38 since early March. There has been an increase in the daily volume over the past two weeks.
The daily relative strength index (RSI) and the price rate of change indicator are displaying positive divergence, indicating a potential trend-reversal.
The daily RSI has entered the neutral region from the bearish zone. The weekly indicators are recovering from the oversold territory. An emphatic break above ₹38 will push the stock higher to ₹45 and then to ₹50.
A further rally above ₹50 can take the stock northwards to ₹55 and then to the long-term resistance level of ₹60.
You can consider averaging at the current levels with a stop-loss at ₹29. A tumble below ₹30 can pull the stock down to ₹25 and then to ₹20.
What is the technical outlook on Supreme Petrochem?
Ashish
Supreme Petrochem (₹155.2): The stock of Supreme Petrochem has been in a short-term uptrend since recording a 52-week low at ₹113 in early March 2020. Last week, the stock breached a key medium-term resistance at ₹145, and hovers above this level. It can test the next resistance at ₹165 on continuation of the uptrend. A decisive break above this level can take the stock higher to ₹180 and then to ₹200 in the long term.
Conversely, if the stock slumps below the immediate support level of ₹145, it can decline to ₹133 and then to ₹120 over the medium term. You can consider buying the stock at lower levels with a stop-loss at ₹130.
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