Technical Analysis: Infibeam Avenues, HFCL, Oil India, NGL Fine-Chem

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I have shares of Infibeam Avenues. My purchase price is ₹42. Should I continue to hold or exit with loss?

Rahul

Infibeam Avenues (₹29.25): The stock has come down sharply after making a high of ₹41 this year. On the chart, the bias is negative with a strong resistance in the ₹32-34 region. As long as the stock stays below ₹34, the outlook will remain bearish. Infibeam Avenues’ share price can fall to ₹22.50-22.00. Failure to bounce back from around ₹22 can drag the stock even down to ₹18 and ₹16 eventually. If a bounce from around ₹22 happens, then a relief rally to ₹28-₹30 is possible.

However, a strong rise above ₹34 is needed to turn the outlook convincingly bullish. That looks less likely. Even if that happens, it might take a long time. So, considering the time factor and the high chances of the price coming down to ₹22 from here, we suggest you to accept the loss and exit the stock at current levels.

What is the long-term outlook for HFCL? Is it a good time to buy this stock? How are the charts looking?

Manjunath, Bengaluru

HFCL (₹121.75): The stock touched a high of ₹171 in September this year and has come down sharply from there. It is now in a corrective fall within the broad uptrend. Resistance is in the ₹132-₹133 region. There is room for the stock to fall further towards ₹105-₹100. In case the sell-off worsens, the fall can extend even up to ₹90-₹80.

So, you may have to wait for a fall. A fresh rise from either ₹100 itself or from around ₹90-₹80 can take HFCL share price up to ₹150-₹160 again. Buy the stock in three tranches, at ₹102, ₹93 and ₹85. Keep the stop-loss at ₹72 initially. Trail the stop-loss up to ₹110 as soon as the stock goes up to ₹130. Move the stop-loss further up to ₹135 when the price touches ₹145. Exit the stock at ₹160.

What is the long-term outlook for Oil India Ltd? Is it a good time to add more shares to the portfolio?

Prasad Ghorpade

Oil India (₹472.95): The stock made a new high of ₹767.30 in August this year, and has tumbled about 38 per cent from there. The fall last week has dragged the price well below a crucial support level of ₹490. The current downtrend is strong and intact. The stock can fall to ₹430. A break below ₹430 will increase the danger of the price tumbling toward ₹360 and ₹330 in the coming months. The region between ₹490 and ₹510 is a key resistance zone.

The stock has to rise past ₹510 to turn the outlook bullish. Only then the doors will open for a rally to ₹700 again. It is better to stay out of this stock for now considering the high chances to see more fall. This stock will become a good buy only if it sustains above ₹430 and then moves above ₹510.

I bought NGL Fine-Chem shares at ₹2,594 recently in August this year. I am in loss now. What is the outlook?

Sabera Begum, Gulbarga 

NGL Fine-Chem (₹1,989.45):  The stock failed in its several attempts to breach ₹2,700 decisively this year, and has been coming down of late. However, strong supports are at ₹1,780 and ₹1,650. A fall beyond ₹1,650 is less likely. We can expect the stock to begin a fresh leg of long-term upmove from ₹1,780 itself or from around ₹1,650.

That leg of rally will have the potential to take NGL Fine-Chem share price up to ₹3,500 in a year or two. So, you can buy more at ₹1,800 and ₹1,680. Keep a stop-loss at ₹1,140. Move the stop-loss up to ₹2,250 as soon as the stock goes up to ₹2,450. Move the stop-loss further up to ₹2,650 when the price touches ₹2,850. Exit the stock at ₹3,500.

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