What is the outlook for Rain Industries? I am a long-term investor. Is this a good time to enter this stock? Please advise.
Rain Industries (₹176.30): The stock broke above the key resistance level of ₹200 last month, but failed to sustain. It made a high of ₹219.65 and then has declined sharply from there. The stock has been broadly consolidating sideways between ₹130 and ₹210 for almost two years now. On the chart, the bias is not negative. At the same time, there is no strong bullish signal as well. However, as seen from the structure of the chart, the bias is positive. Immediate support is around ₹165. Below that, ₹150-140 is a very strong support zone.
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As long as the stock stays above ₹140, we see high chances for the stock to breach ₹210 decisively in the coming months. Such a break can take Rain Industries share price up to ₹300 over the long term. You can buy now and accumulate on dips at ₹155. Keep a stop-loss at ₹115. Trail the stop-loss up to ₹190 as soon as the stock moves up to ₹220. Move the stop-loss further up to ₹245 when the price touches ₹275. Exit the shares at ₹300. The outlook will turn bearish only if the stock makes a decisive close below ₹140. In that case, the price can tumble to ₹100-90.
I had bought shares of Cochin Shipyard. What is the outlook for the stock? Should I continue to hold or book profits now?
Sitara Gopinath
Cochin Shipyard (₹866.20): You have not mentioned your purchase price. So, it will be difficult to give a precise advice. However, we are giving the outlook for the stock here. You can take a call based on that. The stock has been in a strong uptrend. There is no sign of a reversal yet. Supports are at ₹805 and ₹760. As long as the stock stays above ₹760, the trend will remain up. Cochin Shipyard share price has potential to target ₹1,100-1,200 in the coming months.
Assuming that you had bought the stock below ₹760, we suggest you hold the stock. But keep a stop-loss at ₹740. Move the stop-loss up to ₹940 as soon as the stock moves upto ₹1,040. Move the stop-loss further up to ₹1,030 when the price touches ₹1,090. Exit the stock at ₹1,150. If you had bought the stock at a higher level say above ₹800, then you need to take a call based on your risk appetite.
I have shares of Utkarsh Small Finance Bank. My average purchase price is ₹62 . What is the outlook for the stock? Can I continue to hold it or exit with a loss?
Sharath, Patna
Utkarsh Small Finance Bank (₹49.88): Since the stock got listed in July last year, it has very less data available to do a detailed technical analysis. However, we try to give an analysis based on the limited data here. The stock has declined consistently over the last four weeks. That leaves the outlook negative. Last week, an important support at ₹52 was also broken. That could increase the selling pressure on the stock, going forward.
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Moving average cross-overs on the charts also strengthens the bearish case. So, as long as the stock stays below ₹52, the outlook will remain negative. Utkarsh Small Finance Bank share price can fall to ₹46 and even lower from here. A strong, sustained rise above ₹52 is needed to give an early sign of a reversal. A subsequent rise past ₹54 is then needed to turn the outlook bullish. That looks less likely. So, accept the loss and exit the stock rather than holding it with a hope of seeing a reversal.
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