I have bought shares of India Cements at ₹247. What is the short and medium-term outlook for this stock?

Rajesh Munjal

India Cements (₹225.7): The stock has been in a strong uptrend since January 2020. However, the pace of rally had reduced since January 2021 amid volatile swings were seen within each month. Short-term support is at ₹190. As long as the stock remains above it, a rise to ₹255-₹260 is possiblein the next two-three months. From a medium-term perspective, support is at ₹176 – the 21-Month Moving Average. The broader uptrend will continue to remain intact while the stock price sustains above this moving average support.

So, while above ₹176, the chances are high for the stock to break above ₹260. Such a break will then open the doors for an extended rise to ₹300 and ₹310 over the medium term. You can hold the stock. Make use of dips to accumulate the stock at ₹205 and ₹195. Keep a stop-loss at ₹165. Book profits at ₹305.

I have shares of GATI bought at ₹166. Please suggest levels to accumulate the stock at lower levels. Also let me know where I can exit the stock. I intend to hold this stock for two-three years.

Himanshu

GATI (₹174.5): The broader trend is up for this stock, which has been moving up consistently since May 2020 with intermediate corrections. The sharp fall from the high of ₹219.75 made in January this year has halted. The price has reversed higher from the low of ₹129.5 made last month. From a short-term perspective, the level of ₹190 is very important to watch. A pull-back from there can take the stock price down to ₹150-₹140 again. Such a move will increase the danger of a head-and-shoulder pattern on the chart. This is a bearish pattern. However, the moving average indicator on the chart signals that a fall below ₹140 can be avoided and the head and shoulder pattern formation can be negated. 

As such, if a pull-back from ₹190 happens, you can consider accumulating the stock at ₹155. Keep a stop-loss at ₹115. The broader bias is bullish to see a break above ₹190 eventually, if not immediately. Such a break will take the stock price up to ₹260 over the medium term. You can look to exit the stock at ₹255.

What is the outlook for the stock of Bajaj Finance?

Rosh Mayani

Bajaj Finance (₹7,363.55): Structurally, this stock has been on a strong and continuous uptrend. Major corrections in between have always provided a good buying opportunity. The sharp fall in the month of March found support near ₹5,900. The stock has recovered well from the low of ₹5,914. From a long-term perspective, there is a strong support at ₹5,900 – the 21-Month Moving Average. Resistance is at ₹8,050. The chances of seeing a broad sideways range of ₹5,000-₹8,050 appear high in the short term for the next two-three months. An eventual break above ₹8,050 will then trigger a fresh rally targeting ₹9,500 on the upside.

Investors with a long-term perspective can buy in small quantity, say, 30 per of your intended amount at current levels. Wait for dips and accumulate at ₹6,400 the balance 70 per cent. Keep a stop-loss at ₹5,570. Trail the stop-loss up to ₹7,770 as soon as the stock moves up to ₹8,330. Move the stop-loss further up to ₹8,880 as soon as the stock rises to ₹9,220. Book profits at ₹9,470. In case the stock breaks above ₹8,050 from here itself without seeing a pull-back, you can consider buying more on that breakout at around ₹8,120. Follow the same strategy of revising the stop-loss higher at levels mentioned above for this case also.

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