I have 200 shares of Tata Motors bought at an average price of ₹455. What is the short-term and long-term outlook for this stock?
Shailesh Singh
Tata Motors (₹449.65): The trend is up since April 2020. Within this uptrend, the fall from the high of ₹536 made in November last year is just a correction. This corrective fall is getting good support in the ₹380-360 region. As long as the stock sustains above ₹360, the broader uptrend will remain intact. Immediate resistance is at ₹465. A sustained break above it will indicate the resumption of a fresh leg of rally. Such a break can target ₹570-575 or ₹600 over the next three-five months, that is probably by the end of this year.
From a long-term perspective, an eventual break above ₹600 will take the stock up to ₹780-800 over the next couple of years. Hold the stock. If you get to see a dip, accumulate the stock at ₹410. Keep a stop-loss at ₹320. Move the stop-loss up to ₹490 as soon as the stock moves up to ₹560. Move the stop-loss further up to ₹580 as soon as the stock rises to ₹720. Exit 40 per cent of your holdings at ₹740 and move the stop-loss up to the rest of the holdings to ₹680. Exit the balance 60 per cent of the holding at ₹780.
I hold Savita Oil Technologies (SOTL) shares at an average price ₹1,390. What is the outlook for this stock and what should I do now?
Iqbal Ahmed Khan
SOTL (₹1,211.15): The stock has been oscillating in a broad sideways range since December last year. On the charts, this sideways consolidation indicates that the stock is forming a strong base. Resistance is at ₹1,250. Support is in the ₹950-900 region. The chances are high for the stock to break above ₹1,250 if not immediately, but eventually.
Such a break can take the stock up to ₹1,850 initially and then to even ₹2,000 over the next one year or even before that. In case the sideways range holds and the stock falls back, then accumulate at ₹1,050. Keep a stop-loss at ₹880. Revise the stop-loss up to ₹1,180 when the stock moves up to ₹1,800. Move the stop-loss further up to ₹1,400 as soon as the stock touches ₹1,600. Book profits at ₹1,850. This bullish view will get negated only if the stock declines below ₹900 decisively. That will turn the outlook negative. In that case, a fall ₹700-600 can be seen.
What is the technical outlook for the stock of Kewal Kiran Clothing Ltd?
Vageesh S N
Kewal Kiran Clothing (₹343.30): The trend is up. But there is not much room left on the upside from here. Immediate resistance is in the ₹365-370 region, which may hold on its first test. A corrective dip from ₹365-370 towards ₹300 cannot be ruled out. However, a fall below ₹300 will be less likely. An eventual break above ₹370 can take the stock up to ₹400-410. You have not mentioned whether you are holding this stock or intending to buy. If you are holding this stock, keep a stop-loss at ₹290. Move the stop-loss up to ₹340 as soon as the stock moves up to ₹380. Exit the stock at ₹395.
If you intend to buy this stock now, then this will just be a very short-term trade. In this case, you can buy now and accumulate at ₹315. Keep the stop-loss at the same level of ₹290. Follow the same strategy of revising the stop-loss higher as mentioned above. The rise to ₹400 will get negated if the stock breaks below ₹300 decisively. In that case, the outlook will turn negative. The stock can then fall to ₹240.