What is the technical outlook for LIC Housing Finance Ltd? The stock has been coming down for more than a month now.
Sandeep A Nair, Palakkad
LIC Housing Finance (₹635.40): The stock touched a high of ₹827 in mid-July and has been coming down since then. The short-term trend is down. But this fall is just a correction within the broader downtrend. Strong support is around ₹600-585 which can be tested in a month or two. A fresh bounce from this ₹600-585 support zone can take LIC Housing Finance share price up to ₹1,000 in the next two-three quarters.
From a long-term perspective, LIC Housing Finance stock can target ₹1,400 over the next two-three years. If you are a long-term investor, buy on dips at ₹620. Keep a stop-loss at ₹510. Trail the stop-loss up to ₹810 when the price goes up to ₹1,060. Move the stop-loss further up to ₹1,100 when the price touches ₹1,250. Exit the stock at ₹1,370.
What is the outlook for IRB Infrastructure Developers? I have bought this stock at ₹69.
Sudhish
IRB Infrastructure Developers (₹59.66): The stock is in a corrective fall now. The share price touched a high of ₹78.05 in the first week of June this year and has come down from there. There is room for more fall from here. However, supports are at ₹56 and ₹53.50. We can expect the stock to resume the uptrend from either of these two supports. That leg of upmove will have the potential to take IRB Infrastructure Developers share price above ₹80 and target ₹100 in a year or two.
You can accumulate at ₹55. Keep a stop-loss at ₹46. Move the stop-loss up to ₹72 when the price moves above ₹82. Revise the stop-loss further up to ₹85 when the price touches ₹93. Exit the stock at ₹98. Please note that you may need to wait patiently for the above-mentioned rally to materialise.
I have shares of Hindustan Aeronautics Limited (HAL). My purchase price is ₹5,172. Can I continue to hold the stock or exit and book loss?
Rahul
Hindustan Aeronautics Limited (₹4,256.40): The stock made a new high of ₹5,675 in July this year and has come down. Prior to this fall, the stock was in a strong uptrend. The fall from the July high signals that the uptrend is getting reversed. Strong resistances are at ₹4,600 and ₹4,850. As long as the stock trades below ₹4,850, the outlook will remain negative.
Hindustan Aeronautics share price can fall to ₹4,000 from here. A break below ₹4,000 can see the share price tumbling towards ₹3,600 and even ₹3,300 in the coming months. The stock has to breach ₹4,850 and then get a subsequent rise above ₹5,000 to turn the outlook bullish again. But that looks unlikely now. So, it is better to exit the stock now and accept the loss.
Send your questions to techtrail@thehindu.co.in