I have shares of IndusInd Bank bought at ₹1,450. What is the technical outlook for the stock?

P V Ramana, Guntur

IndusInd Bank (₹1,017.10): The uptrend that was in place since April 2020 is clearly broken. The outlook is bearish for IndusInd Bank. Strong resistance is in the ₹1,100-₹1,200 region. As long as the stock trades below this resistance zone, a further fall to ₹965 cannot be ruled out. A break below ₹965 will increase the danger of the stock tumbling to ₹850 or even ₹800.

A rise past ₹1,300 is needed to become bullish again. Only then a rise to ₹1,500 is possible. But that looks unlikely. So, exit now and accept the loss. Please note that whenever you enter a stock make sure to have a stop-loss and adhere to it. That will help to limit the loss if there is a sudden and sharp fall as was seen in IndusInd Bank.

What is the outlook for Housing & Urban Development Corporation (HUDCO)? I have bought this stock at ₹298.

Amritha, Mumbai

HUDCO (₹201.45): The stock peaked at ₹353.95 in July this year and has been coming down consistently since then. The trend is down and there is no sign of a reversal. Immediate support is around ₹190. A break below it can drag HUDCO share price down to ₹160-₹155 in the coming months. To avoid this fall, the stock has to sustain above ₹190 and rise past ₹230.

But even then, going back up to ₹300 levels might be difficult and will also take a lot of time. Because, the kind of surge that happened in the first half this year may not get repeated. On the charts, the chances are looking high for the stock to break ₹190 and fall to ₹160. So, it is better to exit the stock and avoid more loss.

I bought Apeejay Surrendra Park Hotels during its IPO at ₹155. What is the long-term outlook for the stock?

Nizam, Malappuram

Apeejay Surrendra Park Hotels (₹146.05): After an initial rise to a high of ₹234.50 post listing, the stock has been coming down. The trend is down and strong. The stock can fall to ₹135-₹130. Thereafter a bounce is possible. But that bounce might face resistance in the ₹150-₹155 region. The rise above ₹160 is needed to turn the outlook bullish and get a rise to ₹180 and ₹200.

As long as the stock stays below ₹160, there is a danger of breaking below ₹130 eventually in the coming weeks. Such a break can see Apeejay Surrendra Park Hotels share price tumbling towards ₹110-₹105 in the coming months. Exit the stock with minimum loss rather than waiting with a hope for the share price to rise.

I am a long-term investor. I have shares of Cyient bought at ₹1,983. What is the long-term outlook?

C Prasanna

Cyient (₹1,801.45): The stock is in a strong uptrend. Within the uptrend, the stock has been in a correction phase all through this year. Strong support is at ₹1,720 and then in the ₹1,680-₹1,650 region. As long as the stock stays above ₹1,650, the uptrend will remain intact. From a long-term perspective, Cyient share price has potential to target ₹3,000 over the next couple of years.

You can consider accumulating at ₹1,760. Keep a stop-loss ₹1,460. Trail the stop-loss up to ₹2,150 as soon as the stock goes up to ₹2,600. Move the stop-loss up to ₹2,650 when the price touches ₹2,850. Exit the stock at ₹3,000. In case the stock breaks below ₹1,650, though less likely, a fall to ₹1,500 can be seen. However, a fall beyond ₹1,500 is unlikely.

Send your questions to techtrail@thehindu.co.in

Related Topics