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Here are the answers to readers’ queries on the performance of their stock holdings.
I would like to get your views on Karur Vysya Bank.
Prakash Sharma
Karur Vysya Bank (₹34): The stock of Karur Vysya Bank has been trending upwards since it took support at ₹18.75 in late March this year.
But after encountering a resistance at ₹42 in late August, the stock began to decline and has been in a short-term downtrend.
It took support at around ₹30 in mid-October and started to trend upwards. It advanced 4.7 per cent accompanied by above-average volumes in the past week.
The stock at current levels tests the 200-day moving average and faces a crucial resistance ahead at ₹36.
A strong break above ₹36 will alter the previous downtrend and take the stock higher to ₹40 and then to the ₹44-45 band in the short to medium term.
A conclusive break through the significant medium-term resistance in the band between ₹44 and ₹45 can underpin the uptrend that had commenced from the low of ₹18.7 in March. In that case, the stock has the potential to trend upwards to ₹50 and then to ₹55.
The stock has a key resistance in the ₹65-68 zone, which is crucial for determining the long-term trend. An emphatic break above this resistance zone will alter the primary trend, which is currently down, and take the stock northwards to ₹80 and then to ₹90 over the long run.
The key supports below ₹30 are placed at ₹26 and ₹23. Further below, the supports are at ₹20 and ₹18. A decisive fall below ₹26 will bring back selling interest.
Investors with a long-term view can stay invested with a stop-loss at ₹22.
What are the prospects of FDC?
Manjunath N
FDC (₹332.4): The stock of FDC has been on an intermediate-term uptrend from the March low of ₹165. While trending up, the stock breached key resistances at ₹275 and ₹300 in early August and continued to trend upwards. However, a key resistance at ₹375 capped the stock’s rally in late September, and the stock has been in a corrective decline since then.
It now tests support at ₹325. A fall below this base can pull it down to ₹300.
But further decline below ₹300 can threaten the uptrend and drag the stock down to ₹275 and then to ₹250. An immediate resistance is at ₹350. But a strong break above ₹375 is needed to strengthen the uptrend and take it higher to ₹400 and then to ₹440.
Crucial supports below ₹250 are placed at ₹220 and ₹200. Investors with a long-term perspective can remain invested with a stop-loss at ₹190. They can book partial profits if the stock struggles to move beyond ₹400.
Send your queries to techtrail@thehindu.co.in
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