Technical Analysis: Trident, Goodluck India and Hindustan Motors

I have shares of Trident brought at ₹6.40. What is the long-term prediction for this stock? Can I continue to hold it?

Arun Kumar, Coimbatore

Trident (₹39.50): You have caught this stock at the bottom. It is now important for you to protect your profits. The long-term picture is looking positive on the charts although there is room to fall from here. Significant supports are at ₹36 and ₹33. Below that, ₹28 is a very strong support. Trident share price has to decline below ₹28 to become bearish again. But the chances are looking high for the stock to sustain above ₹33 itself. Keep a stop-loss at ₹31 and hold the stock.

Trident share price can surge to ₹65-70 in the coming months. The chances of a rally beyond ₹70 also cannot be ruled out. Revise your stop-loss higher to ₹37 as soon as the stock moves up to ₹53. Move the stop-loss further up to ₹55 when the price touches ₹68. Exit 40 per cent of your holdings at ₹70. Revise the stop-loss for the balance holdings to ₹60. For every ₹5 rise thereafter, move the stop-loss also higher by ₹5. Exit the stock completely at ₹85.

I have shares of Goodluck India. My average purchase price is ₹890. What is the outlook for this stock?

Pavan Varma, Nadimpalli

Goodluck India (₹916.70): The stock topped out at ₹1,168.80 earlier in January this year. The share price has declined sharply from there. Strong resistance is in the ₹950-1,000 region. Goodluck India share price will have to rise past ₹1,000 to become bullish again. Looking at the charts, that rise above ₹1,000 might be difficult. As such, we can expect the stock to fall more from here. On the charts, there is room for Goodluck India share price to fall to ₹770 or even ₹680 in the coming months.

So, it is better to exit the stock at current levels with minimum profit. You can consider reinvesting the sale proceeds in some other stock that looks good on the chart. You can even consider Trident, explained in the previous query. Follow the same strategy as given there. The bearish view on Goodluck India will go wrong if it breaches ₹1,000 from here. If that happens, then this stock can rise to ₹1,350.

What is the outlook for Hindustan Motors? I am holding this share at an average price of ₹18 as a medium-term investment. Should I continue to hold or exit at current levels? Please advise.

Saranya Gosh Sinha

Hindustan Motors (₹40.10): The outlook is bullish. The stock has surged past a key resistance level of ₹26. Looking at the long-term picture, there is room for Hindustan Motors share price to target ₹60-61 in the coming months. Keep a stop-loss at ₹24 and hold the stock. Move the stop-loss up to ₹33 as soon as the stock moves up to ₹49. Move the stop-loss further up to ₹50 when Hindustan Motors share price touches ₹58.

Exit the stock at ₹60. The volatility in this stock is very high. It has made some wild swings in the past. So, it is important for you to follow the revisions in the stop-loss mentioned above carefully. Also, make sure to exit at ₹60. If a turn-around happens, then the share price can fall very fast.

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