Is it a good time to buy Aegis Logistics?

Malarvasagan, Hosur

Aegis Logistics (₹310.25): The stock has been in a downtrend since May this year. The bounce seen last week is just a correction. It is unlikely to sustain. Immediate resistance is at ₹320. Above that, ₹350 is the next strong resistance. Looking at the long-term picture, Aegis Logistics share price can witness one leg of fall in the coming months. That can take the price down to ₹270 initially and then to ₹240-230 eventually. So, it is not a good time to buy the stock.

However, the region around ₹230 is a very strong long-term support zone. A fresh rise from there can take Aegis Logistics share price up to ₹420 thereafter in a year. Wait for the fall and buy at ₹260 and ₹240. Keep a stop-loss at ₹180. Trail the stop-loss upto ₹280 when the price touches ₹360. Move the stop-loss further up to ₹340 when the price reaches ₹400. Exit the stock at ₹420.

I have shares of Solar Industries bought at ₹1,000. Should I continue to hold the stock or exit?

Pradeep, Hyderabad

Solar Industries (₹6,102.70): You have entered this stock right at the beginning of the rally. The stock has been surging for more than two years. There is no sign of a reversal yet. Support for Solar Industries is at ₹5,850. As long as the stock stays above this support, the trend will continue to remain up. The next resistance visible on the chart is at ₹7,050. As such, there is room for the stock to move further up from here. So, continue to hold the stock. But it is important for you to protect the profits. Keep a stop-loss at ₹5,660. Move the stop-loss further up to ₹6,250 when the price touches ₹6,800. Exit the stock at ₹6,950.

In case the stock turns down before ₹6,800, and falls below ₹6,000, then you will have to exit all your positions at the above mentioned stop-loss because once the stock starts to fall, it will be very difficult to exit. Opportunity losses are bound to happen. We will have to accept that and take the right decision. This will help in developing a discipline and sustain in the market for the long term.

I hold shares of Redington for more than a year now. My purchase price is ₹165. What is the outlook? I would like to exit the stock with minimum loss. Please let me know where I should exit.

S. Srikumar 

Redington (₹154.55): The uptrend that was in place since April 2020 has got reversed. The trend is down now. There is a cluster of resistances in the ₹160-170 region. So the recent bounce from the low around ₹136 is likely to be capped and short-lived. The 21-Week Moving Average (MA) is on the verge of crossing below the 100-Week MA. This strengthens the bearish case. It also indicates that fresh sellers are likely to emerge at higher levels.

A fresh leg of fall from the ₹160-170 resistance zone can take Redington share price lower to ₹120-110 over the next five-six months. Since there is not much room to rise for the stock from here, you can exit the stock at the current levels.  You can consider reinvesting the sale proceeds in some other stock that looks good on the chart.

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