Technicals-Force Motors, Savita Oil, HT Media, Monsanto :: Business Line

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What are the future prospects for Savita Oil Technologies and Force Motors.

Vasanthi L Pai

Savita Oil Technologies (₹732.7): The stock met with key resistance at around ₹800 in July 2014 and began to consolidate sideways in the band between ₹650 and ₹800. The price actions in the monthly chart suggest that trend reversal is on the cards.

Failure to rally beyond ₹800 can pull the stock down to ₹650 levels in the medium term.

A downward breakthrough below ₹650 will alter the sideways trend to downwards and pull the stock lower to ₹600 and then to ₹550 in the medium term. Investors with a long-term perspective can hold the stock with a stop-loss at ₹550 levels. An upward break of ₹800 can take the stock northwards to ₹900. Conversely, a fall below ₹550 will pull the stock down to ₹480 and then to ₹380 levels.

Force Motors (₹1,168): The stock of Force Motors lost strength after encountering resistance at around ₹1,400 in October 2014. It has been on a medium-term downtrend since then. However, after finding support around ₹1,010, the stock began to move higher, but faces key resistance at ₹1,250 levels. A break of ₹1,250 will strengthen the long-term uptrend and push the stock higher to ₹1,350 and then to ₹1,400.

Investors with a long-term horizon can stay invested as long as the stock trades above the significant long-term base zone between ₹800 and ₹850. An emphatic rally above ₹1,400 can take the stock to ₹1,500 in the long run. On the other hand, a fall under ₹1,010 levels will pull the stock down to ₹900 and then to ₹850 levels.

I need your opinion on Hindustan Media Ventures.

R Mahesh

Hindustan Media Ventures (₹212.8): After taking support at around ₹105 in November 2013, the stock started to trend northwards. Since then, it has been on a long-term uptrend. Medium-trend has been up since October 2014 low of ₹152.

The stock now tests key resistance at ₹218 levels, which is the ceiling formed in mid-November 2014. A conclusive breakthrough of this resistance can take the stock higher to ₹240 and then to ₹260 levels in the medium term.

Such a break will also give a buying opportunity for investors with a medium-term perspective, who can buy with a stop-loss at ₹205 levels.

But, a downward breach of the immediate support at ₹195 will mitigate the medium-term uptrend and pull the stock down to ₹170 or ₹160 over the medium term.

I had invested in Monsanto India at ₹720. Should I stay invested? Kindly suggest the long-term outlook.

Sandeep Dhawan

Monsanto India (₹2930): After breaking through a key long-term resistance around ₹850 in January 2014, the stock has been on a long-term uptrend.

As you are sitting on hefty gains, it is advisable to take profits off the table at this current juncture.

Moreover, the stock appears to have formed a medium-term peak at ₹3590 recorded in September 2014.

Since then, the stock has on a sideways consolidation phase in the wide range between ₹2600 and ₹3400.

A fall below the lower boundary at ₹2,600 can pull the stock down to ₹2,300 levels.

Next supports are at ₹1880 and ₹1750 levels. The stock is trending northwards now and is facing resistance at ₹3000 level.

A break out of this level could push the stock to test the upper boundary at ₹3400 in the medium-term. Subsequent resistance is at ₹3600 levels