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Here are answers to readers’ queries on the performance of their stock holdings.
What are the medium- to long-term targets for the stock of Nilkamal?
Sadheesh Kumar
Nilkamal (₹1,594.2): Following a strong breach of a key resistance at ₹500 in May 2015, the stock started to trend up and rallied sharply. In February 2016, after a corrective decline, the stock found support at around ₹900 and resumed its uptrend. The stock is in an uptrend across all time frames — long, medium and short-term. A significant support at around ₹1,250 provided base for the stock in late December 2016 and it subsequently breached its 200-day moving average. The stock went up by 8.6 per cent last week. So far, in January, the stock gained 26 per cent backed by good volumes.
Investors with a long-term perspective can hold the stock with a stop-loss at ₹950. Continuing its uptrend, the stock can encounter resistances at ₹1,700 and then at ₹1,840 in the medium term.
Strong rally beyond ₹1,840 can take the stock higher to ₹2,000 levels in the long term. Immediate supports are at ₹1,460 and ₹1,400. A slump below ₹1,400 can mar the short-term uptrend and pull the stock down to 1,250 levels in the medium term. Further fall can pull the stock down to ₹1,125 and then to ₹1,000. At these levels, investors can accumulate the stock.
Please share your views on Triveni Turbine and Srikalahasthi Pipes.
Arun T
Triveni Turbine (₹119.5): The stock of Triveni Turbine has been on an intermediate-term uptrend since taking support at around ₹87 in early March 2016. However, the stock encountered a key resistance at ₹130 in August and started to decline. Over the last two months, the stock has been moving sideways in a narrow band between ₹112 and ₹120.
The stock now tests the upper boundary of this range with a positive bias. Strong breakthrough of ₹120 can take the stock higher to ₹130 in the short term. But to reinforce its uptrend, the stock needs to decisively breach the key resistance level of ₹130. This will take it higher to ₹145 and ₹152 levels. A conclusive fall below the immediate support level of ₹112 will bring back selling pressure and pull the stock down to ₹105 levels in the medium term. Further slump below ₹105 will mar the intermediate-term uptrend and pull the stock down to ₹93 and ₹87 levels in the long run.
Srikalahasthi Pipes (₹292.4): This small-cap stock is in a long-term uptrend. However, significant resistance in the band between ₹335 and ₹350 has been limiting the stock's uptrend since August 2015. In late December 2016, the stock took support at around ₹250 and started to trend upwards. Last week, the stock surged 5.8 per cent witnessing buying interest.
It currently faces resistance at ₹300. An emphatic break-out of this hurdle can take the stock northwards to ₹325 and then to ₹350 levels in the medium term.
Conclusive breakthrough of the long-term resistance band will strengthen the uptrend and the stock can register new highs in the long term.
However, inability to move beyond the key resistance level of ₹350 will keep the stock moving sideways in the range between ₹250 and ₹350 for a while. A slump below ₹250 will have bearish implications and pull the stock down to ₹220 and then to ₹185 in the same time frame.
Send your queries to techtrail@thehindu.co.in
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