Technical Analysis: Container Corporation of India (Concor), ACC and Happiest Minds Technologies

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I have shares of Concor. My purchase price is ₹1,025. What is the outlook for the next one year?

Siyaram Khandelwal

Container Corporation of India (₹893.45): The stock has been in a strong downtrend since June this year. It made a high of ₹1,180 in early June and has come down sharply from there. The downtrend is strong. There is no sign of a reversal. Strong resistance is in the ₹950-1,050 region. As long as the stock trades below ₹1,050, the downtrend will remain intact. Container Corporation of India share price can fall to ₹840 from here.

A break below ₹840 will see the price tumbling towards ₹750 in the next two-three quarters. Thereafter, a revival is possible. Since the chances of rising back is almost nil, we suggest you exit the stock at current levels and accept the loss. You can consider reinvesting the amount in some other stock that looks good on the charts. Please read the next query on ACC. That stock looks good to buy on dips. You consider reinvesting the sale proceeds from this stock to ACC.

I have bought shares of ACC at ₹2,424. What is the long-term outlook for this stock?

Rahmath M

ACC (₹2,442.90): The broader trend is up. Within that, the stock is currently consolidating. ACC is facing resistance in the ₹2,750-2,850 region now. There are chances for a fall to ₹2,150 or even ₹2,000 from current levels. However, that will just be a correction within the broader uptrend. The region around ₹2,000 is a strong support and a fall beyond it is less likely. A fresh rise from around ₹2,000 will have the potential to break above ₹2,850.

Such a break can take ACC share price up to ₹3,300 first and then to ₹3,800 eventually. Assuming that you can hold the stock for long term, accumulate on dips at ₹2,180 and ₹2,070. Keep a stop-loss at ₹1,960. Move the stop-loss up to ₹2,700 when the stock goes up to ₹2,920. Move the stop-loss further up to ₹3,250 when the price moves up to ₹3,500. Exit the stock at ₹3,750. Long-term investors who wish to enter this stock can also buy on dips on the levels mentioned above and follow the same strategy.

I am holding the shares of Happiest Minds Technologies for more than three years. My purchase price is ₹1,030. What is the long-term outlook for this stock?

Balaji Singaram, Thanjavur

Happiest Minds Technologies (₹799.65): This stock has been oscillating in a range of ₹700 and ₹1,000 for about two years now. The trend is absolutely unclear. Since the stock is poised around the lower end of the range, there are chances to go up towards ₹900-950 from here. Some strong positive trigger might be needed for the Happiest Minds Technologies stock to breach ₹1,000. 

That is not in the vicinity at the moment. Considering the prolonged sideways movement, it is not advisable to accumulate at current levels also, although the price is close to the range bottom. It will not be worth the wait anticipating a bullish range breakout. So, we suggest you come out of this stock and accept the loss.

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