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I have shares of HCL Technologies. My holding price is ₹1,478. What is the outlook for the stock? Where can I exit it?
I L Pareek
HCL Technologies (₹1,316.25): The stock peaked at ₹1,696.50 in February this year. From there, the share price has declined sharply. However, structurally the stock has been in an uptrend. So, the recent fall is just a correction within the long-term uptrend. Yet, there is room to fall further from here. Supports are at ₹1,285 and then around ₹1,220-1,200. A fall below ₹1,200 is unlikely. As such, we can expect the stock to resume the broader uptrend from around ₹1,200. That leg of up-move will have a potential to take HCL Technologies share price up to ₹1,850 over the next couple of years.
Assuming that you are a long-term investor, we suggest you accumulate the stock at ₹1,260. Keep a stop-loss at ₹1,140. Trail the stop-loss up to ₹1,520 when the price goes up to ₹1,680. Move the stop-loss further up to ₹1,710 when the price touches ₹1,810. Exit the stock at ₹1,850. The bullish view will go wrong if HCL Technologies share price declines below ₹1,200. If that happens, there is a danger of the stock tumbling towards ₹1,000.
I had bought shares of Clean Science and Technology Ltd. My average price is ₹1,457. What is the medium- and long-term technical outlook for this stock? I can add, if required. Kindly guide.
Maneel
Clean Science and Technology (₹1,292.75): Barring the rise to ₹1,622 in January this year and the fall to ₹1,227 in March last year, this stock has been broadly range-bound between ₹1,275 and ₹1,600 since mid-November 2022. Within this, the share price is now poised at the lower end of the range. So, a bounce from here and a subsequent rise past ₹1,400 can take Clean Science and Technology share price up to ₹1,600 – the upper end of the range in the coming months. We will have to wait for a breakout on either side of the ₹1,275-1,600 range to get clarity on the next direction of move.
A break above ₹1,600 will be bullish. It can take Clean Science and Technology share price up to ₹1,800 and higher. But if the stock declines below ₹1,275, it will be bearish. In that case, the stock can fall to ₹1,000 and even lower. Since you have entered into this stock slightly at the upper end of the range, we suggest you exit the stock and accept the loss. You can consider reinvesting the sale proceed in some other stock that looks good on charts. You can even consider HCL Technologies, explained in the previous query.
I have bought Signature Global (India) share price at ₹1,275. What is the medium-term view of this stock?
Sabera Begum, Gulbarga
Signature Global (India) (₹1,250): This stock has got listed just in September last year. So, it does not have much history of price data to do a detailed technical analysis. So, it will be difficult to give a broad outlook for this stock. However, with the available data, we will try to give you a short-term view. Please see that and act accordingly. Signature Global (India) share price has been coming down gradually since March this year. A very crucial support is at ₹1,200. Resistances are at ₹1,310 and ₹1,370. Signature Global (India) share price has to breach ₹1,370 decisively to bring back the bullishness. If that happens, then the chances are high for the stock to rally towards ₹1,600-1,700.
On the other hand, if the stock declines below ₹1,200, it will be very bearish. Such a break can drag the stock down to ₹1,100-1,000 and even lower in the coming months. If you have the risk appetite, then keep a stop-loss at ₹1,170 and hold the stock. Move the stop-loss up to ₹1,280 when the price goes up to ₹1,330. Revise the stop-loss further up to ₹1,430 when the price touches ₹1,560. Exit the stock at ₹1,650. If the stock declines below ₹1,200, then adhere to the stop-loss and exit at ₹1,170, as mentioned above.
Send your questions to techtrail@thehindu.co.in
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