Technicals: Aban Offshore, Anant Raj, Gateway Distriparks, PTC, SCI, Tata Metaliks : Business Line

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I have purchased Aban Offshore at ₹820 and wish to hold it. Kindly let me know the short-, medium- and long-term outlook.

B. Parab

Aban Offshore (₹732.6): Following a sharp fall in early July this year, the stock found support at ₹750 and bounded up. However, this up-move failed to turn into an uptrend.

After hitting resistance at around ₹800 in early August, the stock started to decline and decisively breached the key support at ₹750. This level has now turned into a key resistance level. Only a strong breakthrough of ₹750 will take the stock higher to ₹800 and then to ₹830 in the medium term. Next resistance above ₹830 is pegged at ₹940.

But a decisive fall below the stock’s immediate support at ₹700 will have an adverse effect and the stock can decline to ₹600 and then ₹550 in the medium to long term. In this scenario, exit the stock and buy at lower levels.

Subsequent supports below ₹550 are placed at ₹500 and ₹450.

I hold Anant Raj at ₹70. Shall I hold for the long term?

Biju P

Anant Raj (₹57.7): The stock of Anant Raj is in a long-term downtrend; only a strong move above ₹150 will bring in bullish momentum. But this is unlikely to happen as the stock’s significant resistance at ₹100 is limiting rallies. In early June 2014, the stock encountered a hurdle around ₹85 and began to decline. It has been on a short-term downtrend since then. However, the stock is currently testing the 200-day moving average and an important support at ₹54, which can provide a near-term breather.

A fall below this level will strengthen the downtrend and drag the stock down to ₹50 and then to ₹42 levels in the medium term. Exit the stock on rallies. Immediate resistances are at ₹65 and ₹74 levels.

Is it better to hold shares of Gateway Distripacks purchased at ₹240 or sell? Please give the technical outlook.

Ajit

Gateway Distriparks (₹255): Though the stock breached the key resistance at ₹245 in the previous week after testing it for over two months, its indicators are projecting a bleak medium-term outlook. Having stuck to the stock for many years, it is advisable that you exit the stock now and re-enter at a later stage.

The stock has important support band between ₹220 and ₹230; a decisive fall below this will pave way for a downmove to ₹180. Next support is at ₹155. Important resistances are at ₹261 and ₹270.

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