Technical Analysis

Your Stock Portfolio

Stock query: Rallis India on strong footing

Yoganand D | Updated on June 21, 2020 Published on June 21, 2020

The stock has been on a medium-term uptrend since it took support at ₹150 in March

Here are the answers to readers’ queries on the performance of their stock holdings.

What is the short-term outlook of Rallis India? I would like to buy for a short-term horizon.

Ashish

Rallis India (₹261.5): The stock of Rallis India found support at around ₹140 in May 2019 following an intermediate-term downtrend. Thereafter, the stock started to trend upwards.

But it encountered a key resistance at ₹245 in February this year and witnessed a sharp fall.

However, the stock took support at ₹150 in March and continued to trend upwards.

It has been on a medium-term uptrend since then. While trending up, it breached the key resistance at ₹200 in early April.

Subsequently, this level turned into a key support and cushioned the stock. It decisively breached a key resistance at ₹245 in the previous week.

It trades well above the 21- and 50-day moving averages.

Both the daily and the weekly price rate of change indicators feature in the positive terrain, implying buying interest. Besides, the daily and the weekly relative strength indices (RSIs) are hovering in the bullish zone, backing the uptrend.

Though the short-term outlook is bullish for the stock, it faces a key barrier ahead at ₹280.

A strong rally above this level can push the stock northwards to ₹300 in the short to medium term. It has a key long-term resistance at ₹300.

A further break above this vital level can take the stock northwards to ₹320 and then to ₹330 in the long run.

On the other hand, a decisive slump below the key base level of ₹200 will mar the medium-term uptrend that has been in place since March.

In that case, the stock can decline to ₹180 and then to ₹160 over the medium term.

The immediate supports are at ₹245 and ₹225. You can consider buying the stock in declines with a stop-loss at ₹220.

Investors with a long-term perspective can stay invested with a stop-loss at ₹170.

Please discuss the technical details for PTC India purchased at ₹33 with a short-term investment target.

Nabeel

PTC India (₹40.8): The stock of PTC India took support at around ₹33 in March and again in late May and started to trend upwards. It has been in a near-term uptrend over the past three weeks accompanied by good volume.

The indicator and the oscillator on the daily chart feature in the positive territory, backing the uptrend. But, the stock now faces a key resistance in the band between ₹43 and ₹45.

A decisive break above this zone will take the stock northwards to ₹50 and then to ₹55 over the medium term. Inability to move beyond ₹45 will keep the stock consolidating sideways in the wide range between ₹33 and ₹45 for a while.

The immediate supports are at ₹37 and ₹35. Investors with a long-term perspective can buy the stock in declines with a fixed stop-loss at ₹35.

Send your queries to techtrail@thehindu.co.in

Published on June 21, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
Weekly trading guide: RIL in a strong uptrend