Technical Analysis: CESC, Laxmi Organic Industries and Kiri Industries

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I have purchased 500 shares of CESC in September 2021. My purchase price is around ₹87. What is the outlook for the stock? Can I continue to hold the stock?

Vijayan Kuttiadan, Kannur

CESC (₹100.50): The outlook is bullish. The trend is up since April this year. Support is around ₹95. The stock is unlikely to fall below ₹95. CESC share price can rise to ₹115 over the next three-five months. You can continue to hold the stock. Keep a stop-loss at ₹92. Move the stop-loss up to ₹101 as soon as the stock moves up to ₹106. Move the stop-loss further up to ₹108 when the price touches ₹111. Exit the shares at ₹115. The region around ₹115 is a very strong long-term trend resistance. As such, the chances are high for the current uptrend to end around ₹115.

So, we can expect the trend to reverse lower from around ₹ 115. So, you will have to exit your holdings at ₹115 rather than expecting for much higher levels. On the other hand, if it breaks below ₹95 from here itself and declines, exit all the shares at the above-mentioned stop-loss level of ₹92. But we see very less chances for that fall to happen. Instead, the preferred path of move would be to test ₹115 on the upside first and then see a reversal.

I have bought Laxmi Organic Industries at ₹251 as an investment. What is the outlook? Where can I accumulate this stock? What can be the target price to exit?

Devang Joshi

Laxmi Organic Industries (₹281.55): The stock has been broadly trading in a sideways range since May this year. The range of trade has been ₹245-320. Within this range, the bias is bullish. Immediate resistance is at ₹293. But the chances are high for the stock to break ₹293 and rise to ₹320 – the upper end of the range. From a slightly big picture, the chances are high to see an extended rise to ₹340. This can happen by the end of first quarter or early second quarter next year. The price action, thereafter, will need a close watch.

Failure to breach ₹340 can drag the share price below ₹300 again. A decisive break above ₹340 will be very bullish to revisit ₹400-levels over the long term. For now, keep a stop-loss at ₹235 and hold the stock. Move the stop-loss up to ₹285 when Laxmi Organic Industries’ share price rises to ₹310. Move the stop-loss further up to ₹320 when the price touches ₹335. If the price moves above ₹340, hold the stock and exit at ₹400. Else the stock turns down from ₹340, exit at ₹320 as mentioned above.

I have shares of Kiri Industries. My purchase price is ₹360. What is the outlook for this stock? Should I continue to hold the stock or exit and book loss?

Devanshu Mohata

Kiri Industries (₹292.35): The stock has been stuck below ₹300 since April this year. On the chart, there is no sign of strength. The immediate outlook is mixed. The stock price can go either way. A decisive rise above ₹300 can take it up to ₹400-420. On the other hand, a fall below ₹260 can drag Kiri Industries’ share price down to ₹200. From a big picture perspective, the stock has been broadly range bound between ₹200 and ₹700 since 2017.

Considering this, there could be chances of the downside being limited to ₹200. So as long as the stock holds above ₹200, there are chances to see a rise back to ₹700. This is assuming that the range is intact. But even if the rise to ₹700 happens again, it may take a long time. So, it won’t be worth the wait. As such, we suggest you to exit the share at the current levels and accept the loss.

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