What is the outlook for Laxmi Organic Industries? Can I buy the stock now
Disha, Kolkata
Laxmi Organic Industries (₹198.20): The outlook is bearish. The stock has been in a strong downtrend since September last year. This fall has taken the share price well below the key support level of ₹220 last week. It also marks the end of a two-year sideways consolidation. Moving average crossovers on the weekly chart strengthens the bearish case.
Laxmi Organic Industries share price can fall to ₹170-₹165 in the next few weeks. Thereafter a bounce is possible. However, the stock may find it difficult to rise above ₹220 again. That might need some strong positive trigger. Even if it manages to rise above ₹220, an eventual rise above ₹325 is needed to turn the outlook bullish. So, it is not advisable to enter the stock now. Stay away from the stock.
I have shares of GNA Axles bought at ₹385. What is the long-term outlook? Can I accumulate?
Siddharth
GNA Axles (₹328.20): The stock was in a strong uptrend since April 2020. But the break below ₹370 and the subsequent fall in the last couple of weeks indicates a trend reversal. There is some support around ₹300 which can hold on its first test. A bounce from there can take the stock up to ₹350-₹370 again. But thereafter a fresh leg of fall can happen which can drag GNA Axles share price below ₹300.
Such a fall will see the stock tumbling towards ₹200 in the next few months. Since there is more room to fall from here, it is not advisable to hold the stock and also accumulate anywhere. So, exit at current levels and accept the loss. Please remember to have a stop-loss whenever you enter a position. That will help in limiting the loss in case if there is a sharp fall.
I want to Invest in NTPC for long term. What is the outlook?
Kushal, Mumbai
NTPC (₹300.25): The share price peaked at ₹448 in September last year and has been coming down since then. This fall is a correction within the broad uptrend that had begun from November 2020. There is no sign of the correction coming to an end. NTPC share price can fall to ₹250-240 from here. This ₹250-240 is a strong support where the fall can halt.
We can expect a fresh leg of rally to begin after that which can take the stock up to ₹350-400 again. So you have to wait to buy the stock near ₹250. Keep the stop-loss at ₹210. Revise the stop-loss up to ₹280 when the price goes up to ₹320. Move the stop-loss further up to ₹310 when the price touches ₹350. Exit the stock at ₹400.
I have bought JSW Infrastructure shares at ₹304. What is the long-term outlook for this stock?
Subith
JSW Infrastructure (₹228.55): The trend is down, and the outlook is bearish. The stock has decisively broken a key support level of ₹270 this month. Immediate resistance is at ₹250. Any intermediate bounce can be capped at this level. Fresh sellers are likely to come in at around ₹250. As long as the stock trades below ₹250, the outlook will remain bearish.
So, the chances are very less for the share price to go above your purchase price. JSW Infrastructure share price can fall to ₹200 from here. After this fall, there can be a bounce. But it might take a long time to go back above ₹300. So, it is not advisable to accumulate at ₹200. Exit the stock now and accept the loss rather than waiting with a hope for the share price to bounce.
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