I would like to invest in MSTC and NMDC. Please let me know the technical outlook for these stocks from a medium to long term perspective.

Rajeswar Reddy

MSTC (458 INR): MSTC’s stock price is up 46 percent in the past two weeks. The price action since February 2020 is taking the form of a strong bullish channel. The stock is now approaching the upper end of this channel resistance at INR 520. Therefore, there is not much room left to the upside from the current levels. We expect Rs 520 to limit the upside.

A pullback from around £520 would keep the channel movement intact and could pull the stock lower to $350 and even Rs 300 in the coming months. Therefore, it is not recommended to enter this stock at current levels. Perhaps you can consider buying the stock later in the region of Rs 350 – 300 when a correction occurs.

NMDC (153.4 INR): NMDC stock has been on a prolonged sideways consolidation between ₹ 60 and ₹ 205 since 2012. The stock hit a high of ₹ 213 in May of this year and has fallen since then, thus keeping the sideways range intact. As such, the chances are high for the stock to move lower towards the lower end of this range in the coming months. Wait for the fall to buy at the lower end of the range in the $60-$55 region. Alternatively, in the event the stock rises from here and closes strong weekly above $185, you could consider buying the stock. In this case, the stock can go up to $300 – Rs 310 initially and even higher at the end in the long run.

I have bought Punjab National Bank shares at an average price of INR 58. What are the medium term prospects?

subash kolaPunjab National Bank (INR 42.55): Punjab National Bank stock has been struggling to gain momentum and saw a strong rally although it formed a strong base around $25. The stock must rise above $50 decisively in order to confirm the reversal and also signal the beginning of a new phase of the rally. This fraction can go as high as $70 at the beginning and then as high as $100 at the end. But this seems difficult as evidenced by the price action in the charts.

Some strong and fresh catalysts in the form of news or something else will be needed to take the stock above $50 from here. It is advisable to book a stock loss and exit at current levels. If you want to hold the stock, you may need a lot of patience to see the $70 and $100 levels, if at all.

Send your inquiries to techtrail@thehindu.co.in

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *