J.B.Chemicals and Pharmaceuticals (Rs 80.9): After bottoming out in the October 2008 trough at around Rs 20, the stock has been on a long-term uptrend. As long as it trades above its significant long-term support level at Rs 70, its long-term trend remains up. Long-term targets for the stock are at Rs 100 and Rs 117. However, decline below key support level at Rs 70 will drag the stock down to Rs 60 and Rs 50.
The stock has been on a medium-term downtrend from its all-time high of Rs 132 registered in April this year. However, the stock is just hovering above its key support level of Rs 80. Emphatic breach of this support in the ensuing weeks will pull the stock down to Rs 74 and then to Rs 70 in the medium-term. Key resistance are positioned at Rs 90 and then at Rs 95.
Omax Autos (Rs 40.3): The stock has been on a long-term downtrend from its life-time high of Rs 174 marked in early 2006. Its recovery in 2009 was unable to take the stock to its trend deciding level at Rs 95. The stock reversed downwards at Rs 70 in January 2010. Its long-term downtrend stays. Intermediate- and medium-term trends are also down for the stock.
Inability to surpass its important long-term resistance at Rs 46 in April and July is a distressing factor. The stock can decline to its immediate support level at Rs 35. Strong fall below this level can pull the stock down to its next support band between Rs 28 and Rs 30 in the medium-term. Resistances are at Rs 43, Rs 46 and Rs 52.
I would like to know the short- and medium-term technical outlook for Exide Industries and MRPL. Can I re-enter at these levels?
Raajesh Reddy, S. Subbulakshmi
Exide Industries (Rs 132.1): After encountering resistance at around Rs 175 in last October, the stock has been vacillating in the broad band between Rs 122 and Rs 175. Thereafter, the level at Rs 175 has been acting as a strong barrier for the stock. In July, the stock started declining after encountering resistance at Rs 175 levels.
Since then the stock has been on a medium-term downtrend. Its short-term trend is also down. On September 9, the stock dived four per cent, conclusively breaching its key support at Rs 140 and this has reinforced the medium-term downtrend.
The stock can continue its downward journey and reach the lower boundary of the broad sideways band at Rs 122 in the short-term. Strong weekly close below Rs 122 will pull the stock down to Rs 115 or Rs 110 in the medium-term. Rallies can encounter resistances at Rs 140 and Rs 150.
Mangalore Refinery and Petrochemicals (Rs 66.3): Following its 2009 peak at Rs 102 in the month of June, MRPL has been on a long-term downtrend. Encountering resistance at Rs 84 in late July this year, the stock resumed its downtrend and has been on a medium-term decline.
Failure to move above its immediate key resistance level at Rs 70 in the upcoming weeks can pull the stock down to Rs 62 and then to Rs 58 in the medium-term. Decisive tumble below Rs 58 will strengthen its long-term downtrend and can pull the stock down to Rs 50 or Rs 42.
Only a strong move above Rs 76 will be a cue for entering into the stock. In that event, it can rally to Rs 86 and then to Rs 90 levels. Short-term trend is also down.
Can you please give me the short- and medium-term prospects of M&M Financial and Shriram Transport Finance?
Sridhar
Mahindra and Mahindra Financial Services (Rs 669.6): The stock has been consolidating sideways in a broad range between Rs 600 and Rs 840 since last November. Significant support at Rs 600, the lower boundary of the stock, has been consistently providing cushion since the beginning of this year.
Taking support from this level, the stock reversed higher in late August. On Friday, the stock surged 5.5 per cent with good volumes breaching its 200-day moving average. It has immediate resistance at around Rs 660. In the short-term, the stock can rally and encounter resistance at Rs 715.
Medium-term trend will turn positive on a strong weekly close above Rs 715. This can lift the stock higher to Rs 770, Rs 800 and then to Rs 825. Failure to surpass Rs 715 will confine the stock to moving in sideways in the range between Rs 600 and Rs 715. Significant supports below Rs 600 are pegged at Rs 536 and Rs 450.
Shriram Transport Finance Company (Rs 673.6): The stock's uptrend that started in April 2009 at around Rs 180 had a spectacular journey until it peaked out after registering an all-time high at Rs 899.9 in November 2010. However, since then, the stock has been on an intermediate-term downtrend. Strong move above Rs 760 is required to reverse the downtrend and take the stock upwards to Rs 830 or Rs 890 in the ensuing months.
The stock has been consolidating sideways between Rs 600 and Rs 700 over the past three months. Emphatic penetration of Rs 700 will give a short-term target of Rs 760 for the stock. Key support below Rs 600 is at Rs 550 and Rs 500.
I purchased shares of Max India at Rs 186. Please tell the resistance, support levels and targets over short-, medium- and long-term.
K K Shah
Max India (Rs 207.9): Ever since the stock turned around from the significant support level at Rs 140 in March, it has been on an intermediate-term uptrend. In late August, the stock resumed its uptrend by breaking through a medium-term resistance at around Rs 186 and gained pace. Medium- and short-term trends are up for the stock. However, it is facing resistance at its immediate key resistance band between Rs 215 and Rs 220.
Downward reversal from this resistance can cause a corrective decline to Rs 198 or Rs 186 in the short-term. On the other hand, decisive weekly close above the resistance band can take the stock higher to Rs 240-250 range. Important supports below Rs 186 are at Rs 175 and Rs 150.
I bought Lakshmi Overseas Industries at Rs 39. What are the short- and medium-term prospects for the scrip?
K Kamakshi
Lakshmi Overseas Industries (Rs 25.6): Across all time frames — long-, medium- and short-term, the stock has been in a downtrend. Reversing below the key resistance level at Rs 51 in April, the stock has been on a medium-term decline.
But in August, the stock found support at around Rs 22 and is just hovering above this support. Strong decline below Rs 22 will drag the stock down to Rs 18 and to Rs 15; even a fall below Rs 10 is possible in the long-term.
The stock can encounter resistance at Rs 29, Rs 34 and Rs 40 in the months ahead. Conclusive weekly close above Rs 40 is required to reverse the medium-term downtrend and take the stock higher to Rs 45 or to Rs 51.
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