I’ve shares of Asian Paints purchased at ₹3,075. Ought to I proceed to carry the inventory or exit?
P Narayanan Nair
Asian Paints (₹2,260): After oscillating in a large sideways vary for greater than three years, Asian Paints share value has tumbled since October final yr. The essential help stage of ₹2,700 has been damaged. There’s help close to present ranges at ₹2,200. However a bounce from right here may be capped at ₹2,700. The inventory has room to see ₹2,000 on the draw back.
This fall can occur both from right here itself or after a short-lived corrective bounce to ₹2,700. The inventory has to rise previous ₹2,700 to turn into bullish once more. Which may not be very straightforward. So, it’s higher to exit the inventory now and settle for the loss. At all times keep in mind to have a correct stop-loss and exit stage on the time of coming into a inventory. It will assist in exiting a flawed place with a minimal loss.
I’ve shares of Aarti Industries. My common buy value is ₹600. I’m a long-term investor. What’s the outlook?
Okay. Sivanandam, Puducherry
Aarti Industries (₹442): The inventory has been in a powerful downtrend since 2022. There isn’t any signal of a reversal. On the charts, the image remains to be weak. The long-term uptrend that was in place since 2014 has been damaged. Resistances are at ₹470 and ₹540. Some help is at ₹400 which is holding for now. However any bounce from right here will likely be capped and short-lived.
A robust break beneath ₹400 will enhance the hazard of the share value tumbling in the direction of ₹300 and ₹250. Aarti Industries share value has to rise above ₹700 to be able to point out a pattern reversal. It’s higher to exit the inventory now and settle for the loss slightly than ready with a hope for a reversal.
I’m holding shares of Jai Corp. Can I purchase extra now? What’s the outlook?
Chandan Bhurat
Jai Corp (₹148): The share value has tumbled over 50 per cent in simply the final three weeks. The sharp fall was triggered after the information on capital discount proposal by City Infrastructure Holdings Non-public Restricted (UIHPL), the place Jai Corp holds 32 per cent stake. The affect of this information remains to be on the inventory. So, there’s a hazard of seeing extra fall to ₹100 and even decrease if the share value declines beneath ₹130.
Additionally, even when a restoration occurs, it could take a very long time to return above the degrees of ₹250 and ₹300 once more. Contemplating the uncertainty prevailing over inventory primarily based on the information, it’s higher to remain out it now. You haven’t talked about your buy value. However no matter be the entry level, exit the inventory now.
What’s the long-term outlook for the inventory of Electrosteel Castings? Is it an excellent time to purchase this inventory now?
Nisha, Lucknow
Electrosteel Castings (₹127): The inventory peaked at ₹236.65 in September final yr and has come down sharply from there. The downtrend is robust. Resistance is within the ₹135-₹140 area. So long as the inventory stays beneath ₹140, the downtrend will stay intact. The share value can fall to ₹100 from right here.
Thereafter the worth motion will want a watch to see if a reversal is going on or not. To turn into convincingly bullish once more, the inventory has to rise previous ₹140. Keep out of the inventory now. If you’re a high-risk urge for food participant, then you should purchase the inventory round ₹100 with a good stop-loss at ₹95. You could have to exit if the bounce from round ₹100 fails to breach ₹140.
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