I have purchased shares of Restaurant Brands Asia at ₹155 more than two years ago. What is the outlook? Is there any possibility of share price reaching my purchase price? Can I exit the stock now by booking loss or can I buy more and average at current levels?

R Srikanthan, Chennai

Restaurant Brands Asia (₹104.40): The price action on the chart indicates that this stock has been in sideways range for more than two years now. The share price has been in the ₹83-138 range since early 2022. Within this, the stock is now poised around the mid-point of this range. The short-term charts are giving bearish signal. Resistance is in the ₹115-120 region. The chances are looking high for a fall to ₹90-80 in the coming weeks.

As seen from the chart, there is no sign of a range breakout. This ₹83-138 range can continue to remain intact. Averaging at lower levels is also not looking good. Because still you may have to wait for the price to go up and breakout the range. It will not be worth the wait time. So, it is better you exit the stock at current level and accept the loss. You can consider reinvesting this money in some other stock that looks good on the chart. Maybe you can consider Jupiter Wagons, given in the next query, and follow the strategy mentioned there.

What is the outlet for the stock of Jupiter Wagons? I have bought this stock at ₹641.

Jamshad N

Jupiter Wagons (₹558.55): The stock has been in a strong uptrend since April 2023. The share price touched a new high of ₹748 in July this year. From there, the price has come down sharply. But this fall is just a correction within the broader uptrend. Resistance is around ₹585. Jupiter Wagons share price has room to fall further towards ₹465-450. But thereafter, a fresh leg of rally can begin indicating the resumption of the overall uptrend.

That will have the potential to take Jupiter Wagons share price up to ₹1,000 in a year or two. You can buy more and accumulate at ₹480. Investors who wish to buy this stock afresh can also buy at ₹480. Keep the stop-loss at ₹370. Move the stop-loss up to ₹620 when the price goes up to ₹780. Move the stop-loss further up to ₹820 when the price touches ₹910. Exit the stock at ₹1,000.

I am holding United Spirits shares. My purchase price is ₹1,100. Can the stock price go up to ₹2,000 from here? What is the outlook?

Amit Kapoor

United Spirits (₹1,522.75): The stock has been in a strong uptrend. The up-move in this stock has gained momentum since June this year. It is now important for you to protect some of your profits. Supports are at ₹1,470 and then around ₹1,300. You can keep a stop-loss at ₹1,270 and hold the stock. United Spirits share price has potential to see further rise towards ₹1,800.

The chances of the rise extending up to ₹2,000 cannot be ruled out. But it will take some time and will happen after a few corrective falls. So, we suggest you not to wait until ₹2,000 and look to exit the stock at ₹1,800. Move your stop-loss up to ₹1,480 as soon as the share price goes up to ₹1,620. Revise the stop-loss further up to ₹1,660 when United Spirits share price touches ₹1,730.

Send your questions to techtrail@thehindu.co.in

Related Topics