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Here are the answers to readers’ queries on the performance of their stock holdings.
I have bought Axis bank at ₹400 and Prism Johnson at ₹33.2. What are the future prospects of these stocks?
Alok V
Axis Bank (₹428.5): Following a sharp decline in late February and early March this year, the stock of Axis Bank registered a multi-year low at ₹285 in late March. Subsequently, the stock bounced back and has been in a medium-term sideways consolidation phase in the wide band between ₹340 and ₹480.
The daily as well as the weekly indicators are showing mixed signs. The stock encountered a key resistance at ₹440 last week.
A decisive rally above this barrier will pave the way for an up-move to the upper boundary of the sideways movement.
A further breakthrough of ₹480 can take the stock northwards to ₹500 and then to ₹540 over the medium term.
Conversely, if the stock slumps below the immediate base level of ₹400, it can move lower to ₹380 and then to ₹340 levels.
Subsequent crucial supports are at ₹300 and ₹280.
You can consider booking partial profit if the stock fails to move beyond ₹440, and consider averaging at lower levels below ₹380.
You can also consider fresh buying above ₹440 with a fixed stop-loss.
To alter the intermediate-term downtrend that has been in place, the stock needs to decisively break above ₹580 levels.
In such a case, it can trend northwards to ₹600 and then to ₹640 levels in the long run.
Prism Johnson (₹44.1):
The stock of Prism Johnson currently tests a key resistance at ₹50 and is in a minor correction phase. The stock has been on a short-term uptrend since it took support at ₹29 in late March this year.
An emphatic break above the current barrier is needed to reinforce the bullish momentum as well as the short-term uptrend.
In such a scenario, the stock can trend higher to ₹56 and then to ₹60 over the short term.
On the other hand, if the stock’s corrective decline continues, it can extend the fall to ₹42 and then to ₹39 in the coming weeks. A further decline below the second support can drag the index down to ₹35 and then to ₹30 over the medium term.
You can consider booking partial profit if the stock fails to move beyond ₹50, and re-purchase at lower levels.
Send your queries to techtrail@thehindu.co.in
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