What is the technical outlook for Oil and Natural Gas Corporation (ONGC)? Can I buy now?

Maneel

ONGC (₹257): The stock has come down sharply from the high of ₹344.60 made in August this year. Support in the ₹250-₹240 region is holding well. However, resistances are at ₹270 and ₹290, which has to be broken to become bullish and clear the way for a rise to ₹430-₹450. On the charts, ONGC is still vulnerable to break ₹240 and fall to ₹220 and ₹210.

The region between ₹220 and ₹210 will be a good level to enter the stock. So, if you intend to buy the stock wait for a fall and enter at ₹225 and ₹215. Keep a stop-loss at ₹175. Trail the stop-loss up to ₹240 as soon as the stock goes up to ₹290. Move the stop-loss up to ₹320 when the price touches ₹360. Exit at ₹430.

I have shares of Indian Energy Exchange (IEX) bought at ₹79. What is the outlook?

Kumar G

IEX (₹176): The long-term outlook is very bullish for IEX. There is a huge rounding bottom formation on the chart. Strong support is in the ₹155-₹145 region which can halt the current fall. Resistance is around ₹245. We expect IEX to breach this resistance in the coming months. That break will have the potential to take IEX share price up to ₹370 over the long-term.

However, this rally may take a long time, say at least two years. You will now have to protect your profit. Keep a stop-loss at ₹132 and hold the stock. You can even consider buying more at current levels. Move the stop-loss up to ₹220 when the price goes up to ₹270. Revise the stop-loss further up to ₹310 when the price touches ₹340. Exit the stock at ₹360.

I have shares of MMTC purchased at ₹102. Should I continue to hold or exit?

Reshma, Nagpur

MMTC (₹78.60): The stock has declined sharply after spiking to ₹131.88 in July this year. The downside is still open to see ₹63 – an important support. To avoid this fall, the stock has to sustain above ₹72 and rise past ₹90. If that happens, a rise to ₹150 can be seen. Else the stock can fall to ₹63 and then rise back.

If you cannot hold the stock for more time, then exit and accept the loss. On the other hand, if you can withstand more loss and accumulate on dips, then wait. Buy more at ₹65. Keep the stop-loss at ₹57. Move the stop-loss up to ₹78 as soon as the stock goes up to ₹93. Revise the stop-loss further up to ₹105 when the price touches ₹120. Exit the stock at ₹150.

I bought Swan Energy at ₹262. Should I book profits now or continue to hold?

Swadesh Majumdar

Swan Energy (₹611): The stock has been very volatile since the beginning of this year. Support is in the ₹475-₹455 region. Below that ₹400 is the next strong support. In the short-term there are good chances to see a rise to ₹750. A break above ₹750 will be bullish to see a fresh rise to ₹1,100 over the long-term.

But a reversal from ₹750 can drag the stock to ₹500 again. You can consider exiting 30 per cent of your holdings now. Keep a stop-loss at ₹420 for the rest of the holding. Move the stop-loss up to ₹680 when the price goes up to ₹730. Exit another 20 per cent at ₹750 and move the stop-loss up to ₹730 for the balance holdings. If the stock breaks above ₹750, hold the stock for ₹1,100.

Send your questions to techtrail@thehindu.co.in

Related Topics