I own shares of Infibeam Avenues. My purchase price is ₹42. Should I continue to hold or close at a loss?
Rahul
Infibeam Avenue (€29.25): The stock has fallen sharply from a high of ₹41 this year. On the chart, the bias is negative with strong resistance in the ₹32-34 area. As long as the stock remains below $34, the outlook remains bearish. Infibeam Avenues share price may fall to ₹22.50-22.00. If there is no recovery from around ₹22, the price may eventually drag even to ₹18 and ₹16. If a bounce of around ₹22 occurs, a relief rally to ₹28-₹30 is possible.
However, a strong rise above ₹34 is needed to make the outlook convincingly bullish. That seems less likely. Even if that happens, it could take a long time. Considering the time factor and the high probability of the price falling to ₹22 from now on, we recommend you accept the loss and exit the stock at the current level.
What is the long-term outlook for HFCL? Is it a good time to buy this stock? What do the graphs look like?
Manjunath, Bengaluru
HFCL (€121.75): The stock hit a high of ₹171 in September this year and has fallen sharply from there. It is now in a corrective decline within the broad uptrend. There is resistance in the region of ₹132-₹133. There is scope for further decline in the stock towards ₹105-₹100. If the sell-off worsens, the decline could even go up to ₹90-₹80.
So you may have to wait for a fall. Another rise of ₹100 itself or around ₹90-₹80 could take HFCL’s share price back to ₹150-₹160. Buy the shares in three tranches, at ₹102, ₹93 and ₹85. Keep the stop-loss at ₹72 initially. Follow the stop-loss to ₹110 once the share price reaches ₹130. Move the stop-loss further to ₹135 when the price reaches ₹145. Leave stock at ₹160.
What is the long-term outlook for Oil India Ltd? Is it a good time to add more stocks to the portfolio?
Prasad Ghorpade
Oil India (€472.95): The stock hit a new high of ₹767.30 in August this year and has fallen around 38 percent since then. Last week’s fall dragged the price well below a crucial support level of ₹490. The current downward trend is strong and intact. The stock may fall to ₹430. A break below ₹430 increases the danger of the price falling towards ₹360 and ₹330 in the coming months. The area between ₹490 and ₹510 is a major resistance zone.
The stock needs to rise above ₹510 for the outlook to turn bullish. Only then will the doors open again for a rally to ₹700. It is better to stay away from this stock for now, given the high chances of further declines. This stock becomes a good buy only if it sustains above ₹430 and then rises above ₹510.
I recently bought NGL Fine-Chem shares for ₹2,594 in August this year. I’m at a loss now. What are the prospects?
Sabera Begum, Gulbarga
NGL Fine Chem (€1,989.45): The stock failed in its several attempts to decisively cross the ₹2,700 mark this year and has been falling lately. However, there are strong supports at ₹1,780 and ₹1,650. A decline above ₹1650 is less likely. We can expect the stock to start another long-term rise from ₹1,780 itself or from around ₹1,650.
This rally will have the potential to take NGL Fine-Chem’s share price to ₹3,500 within a year or two. So you can buy more for ₹1,800 and ₹1,680. Maintain a stop-loss of ₹1,140. Move the stop-loss to ₹2,250 once the price rises to ₹2,450. Move the stop-loss further to ₹2,650 when the price reaches ₹2,850. Exits stock at ₹3,500.
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