Technical Analysis

We zoom in on its prospects, as also that of two other stocks

I bought shares of Titan Company at about ₹2,600 this March. What is the long-term outlook for this stock?


Titan Company (₹2,141): Structurally, this stock has been on a continuous uptrend with intermediate corrections. Currently, it is in a correction phase within the overall uptrend. The stock has room to fall further towards ₹1,970 and even ₹1,880. These two levels are strong long-term trend supports for the stock. So, a fall beyond ₹1,880 might be very difficult. As such the current corrective fall can find a bottom in the ₹1,970-1,880 region. A fresh leg of rally from the ₹1,970-₹1,880 support zone can take the price up towards ₹2,500 again.

From a long-term perspective, that rally will have the potential to target ₹3,300 on the upside. You have bought this stock almost at the top. If you can withstand more loss, hold on to this stock. Wait for further fall and buy more at ₹1,975 and ₹1,905. Keep a stop-loss at ₹1,620. Trail the stop-loss up to ₹2,220 as soon as the stock moves up to ₹2,600. Move the stop-loss further up to ₹2,600 as soon as the stock touches ₹2,950 on the upside. Exit your holdings at ₹3,250.

What is the outlook of Syngene International? I have bought this stock at ₹600


Syngene International (₹557): The stock has been broadly in a sideways range for a prolonged period of time. ₹490-₹700 has been the trading range since October 2020. Within this range, the stock has been moving down. It is coming closer to the lower end of this range now. Chances are high for the sideways range to remain intact. Supports are at ₹510 and ₹490. The stock can reverse higher anywhere from the ₹510-₹490 region. You can buy more at ₹515 and ₹495. Keep a stop-loss initially at ₹475. Move the stop-loss up to ₹560 as soon as the stock moves above ₹600. Book partial profit for, say, around 40 per cent of your holdings at ₹640. Move the stop-loss for the balance to ₹590. Exit the remaining holdings at ₹680.

The outlook will turn negative if the stock breaks below ₹490 decisively. In that case the stock can fall to ₹440 and even ₹410 eventually in the coming months. Since the stock price is in a prolonged sideways range, exit your holdings as mentioned above. Because, as the price approaches ₹640-₹680, as an investor you might have a bias that the stock will break above ₹700 and rise sharply. However, after exiting, if a break above ₹700 is seen, then you can consider entering the stock again.

What is the outlook for the stock of Hatsun Agro Product Ltd. I have bought this stock at ₹1,054. Can I accumulate more, or should I book loss at current levels? I am a long-term investor and can hold this stock for three years.

J Kannan

Hatsun Agro Product (₹889): The stock has been in a strong downtrend since October last year. The uptrend that was in place since April 2020 has been reversed completely. The next support is at ₹758 – the 61.8 per cent Fibonacci retracement level. Below that the second important support is at ₹692 – the 200-Week Moving Average (WMA). From the charts, it looks like the stock can fall to at least the first support level of ₹758. The chances of the fall extending up to ₹692 will have to be seen. Strong resistance is in the ₹1,000-₹1,100 region.

A strong rise past ₹1,100 will be needed to give an initial sign of relief. But that looks less likely to happen immediately. Also, the recovery either from ₹758 or ₹692 may not be as sharp and swift as the rally seen from April 2020 to September 2021. It might take a longer time and it may test your patience. So, it is better to exit the stock with minimum loss now. You can look to invest that money in some other good stock that might have already come closer to its bottom.

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Published on May 21, 2022