I own City Union Bank shares. Is it worth holding for long term? What is the outlook for this stock?
N.V. Muralitharan, Sivakasi
City Union Bank (₹167): The stock has been oscillating in a wide range for a prolonged period of time. ₹110-205 has been the trading range since April 2020. Within this range, the stock has been moving up recently. The chances are looking high for City Union Bank share price to rise towards ₹200-210 – the upper end of the range in a quarter or two. Failure to breach the ₹200-210 resistance zone and a downward reversal from there will continue to keep the sideways range intact. In that case, the share price can fall back to ₹120-110 – the lower end of the range by the second half of next year.
If the stock manages to breach ₹210 decisively, then that will be very bullish from a long-term perspective. In that case, City Union Bank share price can target ₹340-350 in a year or two. You have not mentioned your purchase price. So, it will be difficult to give a precise advice. If the stock turns down from the ₹200-210 resistance zone, then exit at ₹190. If a break above ₹210 is seen, then hold the stock for the target of ₹330.
I have shares of Ircon International, bought at ₹117. Should I sell the stock and book profit or continue to hold?
Suresh Kumar Babbar
Ircon International (₹270): You have made a very good entry into this stock. It is now important for you to protect your profits. The overall uptrend is still intact. There is no sign of a reversal yet. Strong supports are at ₹240 and ₹220. Considering the recent volatility in the price movement, there are chances to get a quick dip from current levels to ₹240 at least. So, you can keep a stop-loss at ₹210 and hold the stock. Ircon International share price has potential to rise to ₹380-400 in the coming months. ]
A decisive break above ₹310 will clear the way for this rally. Move the stop-loss up to ₹305 as soon as the stock moves up to ₹340. Move the stop-loss further up to ₹320 when the price touches ₹360. Exit the stock at ₹380. In case the stock fails to breach ₹310 and declines below ₹220, you will have to adhere to the stop-loss and exit at ₹210. But the chances of such a fall looks less likely at the moment.
What is the short-term outlook for Amba Enterprises?
Farhan Ali, Salem
Amba Enterprises (₹234): The stock spiked to a high of ₹264.50 this month and has come down from there. The share price has seen a very strong surge in a short span of time. That leaves the stock of Amba Enterprises vulnerable for a corrective fall, going forward. Support is around ₹220. A break below it can take the share price down to ₹190-185 in the short term. The region around ₹185 is a strong support. So, a fall beyond ₹185 is less likely. A strong and sustained bounce from the ₹190-185 support zone will have the potential to take Amba Enterprises share price up to ₹250 again.
This is not the right time to enter this stock if you intend to do now. You may have to wait for the share price to fall to ₹190-185. After the bounce from this support zone happens, you can enter this stock. Assuming that you are entering the stock at ₹190, keep the stop-loss at ₹155 for the target of ₹250. Trail the stop-loss up to ₹205 when the price goes up to ₹220. Move the stop-loss further up to ₹225 when the price touches ₹240.
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