Comments
I am having shares of Cipla bought at ₹1,200. I can hold the stock for another two years. What is the long-term outlook?
Amit Kapoor
Cipla (₹1,595.25): The stock has been in a strong uptrend since March 2020 within intermediate corrections. This uptrend is intact. The share price touched a new high of ₹1,702 and has come down slightly from there. However, there is no sign of a reversal yet. Strong support is in the ₹1,500-1,450 region. A short-term dip to test this support cannot be ruled out. However, a fall beyond ₹1,450 is less likely. It is important for you to protect your profits. So, keep a stop-loss at ₹1,420 and hold the stock.
Cipla share price can rise to ₹1,800-1,850 in this quarter. Thereafter a corrective dip to ₹1,650-1,600 is a possibility. But eventually, the stock can breach ₹1,850 and rise to ₹2,000 in the first quarter next year. Move the stop-loss up to ₹1,620 as soon as the stock goes up to ₹1,820. Move the stop-loss further up to ₹1,860 when the price touches ₹1,930. Exit the stock at ₹2,000.
I have purchased Prakash Industries shares at ₹229. The share price has come down sharply below ₹200. What is the outlook? Can I continue to hold the stock?
Sanjaymehta
Prakash Industries (₹169.70): The historical price action of this indicates that the share price moves in a very wide range. Any rise above ₹200 in the past has always ended in strong reversal taking the share price all the way down toward ₹30-20. The stock touched a high of ₹237.25 in August and has been coming down since there. So, going by history, the chances are high that the stock price would have peaked now.
That leaves Prakash Industries share price in a big danger for tumbling towards ₹50 and even ₹20 again in a year or two. Support is around ₹140. A break below it can trigger the above-mentioned fall to ₹50-20. Even if the stock goes back above ₹200, the upside can be restricted to ₹260-₹265. So, considering the historical price movement, it is better to exit the stock and accept the loss.
What is the outlook for Tatva Chintan Pharma Chem Ltd? It is it a good time to enter this stock from a long-term perspective?
Rahul Nigotiya, Jaipur
Tatva Chintan Pharma Chem (₹1,010): The stock has been in a strong downtrend since September 2022. Since August this year, the stock has been consolidating above ₹940. However, it is not very clear whether this consolidation is a base formation or a pause within the broad downtrend. Resistance is around ₹1,100. A break above it will give a breather and take the share price upto ₹1,270.
A sustained rise above ₹1,270 is necessarily needed to confirm a trend reversal. Only then the outlook will turn convincingly bullish for a rise to ₹2,200 over the long term. Failure to breach ₹1,100 now will keep the stock under pressure to break ₹940 in the coming weeks. Such a break can drag Tatva Chintan Pharma Chem share price down to ₹750 and even lower. So, this is not the right time to enter into this stock.
Send your questions to techtrail@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.