Comments
Here are the answers to readers’ queries on the performance of their stock holdings.
What is your view on SBI Life ?
RT Rajasekaran
SBI Life Insurance Company (₹862.5): The stock of SBI Life Insurance Company took support in the band between ₹500 and ₹515 in February 2019 and began to trend upwards. But the stock encountered a significant resistance at ₹1,000 in October 2019 and again in January 2020.
Subsequently, the stock began to decline along with the broader market sell-off in the months of February and March. After retracing the previous up-move completely, the stock took support from the long-term base zone between ₹500 and ₹515 in March this year. It has been in an intermediate-term uptrend since then. Follwoing a corrective decline, it recorded a low of ₹755 in late October and continued to trend upwards thereafter. It has been on a short-term uptrend since then. But the stock now faces a key resistance ahead at ₹900.
An emphatic break above this level is needed to reinforce the uptrend and push the stock northwards to the long-term resistance level of ₹1,000. A strong breakthrough of this resistance is required to underpin the bullish momentum and take the stock higher to ₹1,100 and then to ₹1,200 over the long run. On the downside, the stock can decline to the immediate support level of ₹800 if it fails to move beyond ₹900. A further break below the support level of ₹800 can drag the stock down to ₹750 and then to ₹700. As long as the stock trades above the key long-term support level of ₹700, the uptrend will remain intact. You can buy the stock on declines with a long-term stop-loss at ₹680. Key supports below ₹700 are at ₹660 and ₹600.
What are the prospects for Syngene International purchased at ₹565 for short, medium and long terms?
S Vanaja
Syngene International (₹572.3): The stock of Syngene International has been on an intermediate-term uptrend since it recorded a 52-week low at ₹201 in late March this year.
In late September, it registered a new high at ₹596 and started to correct. Since then, it has been in a sideways movement in the band between ₹520 and ₹600.
A strong break above ₹600 will strengthen the uptrend and take the stock northwards to ₹650 and then to ₹700 over the medium- to long-term time-frame. But, a plunge below the lower boundary can pull the stock down to ₹500 and then to ₹470 over the medium term.
The next supports are at ₹450 and ₹400. The current uptrend will remain in place as long as the stock trades above the crucial long-term support level of ₹350. Investors with a long-term view can stay invested with a stop-loss at ₹325.
Send your queries to techtrail@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.