Technical Analysis: HeidelbergCement India, Tata Teleservices (Maharastra) Ltd (TTML) and General Insurance Corporation of India (GIC Re)

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I wish to buy the shares of HeidelbergCement India. What is the outlook? Is it a good buy at current levels? I am a long-term investor and can hold the stock for two to four years.

Ajay

HeidelbergCement India (₹225.05): The stock has been in an uptrend since April last year. This upmove has broken the downtrend that was in place from September 2021. So, the long-term outlook is bullish now. Moving average cross-overs on the weekly and monthly charts strengthen the bullish case. Strong support is now in the ₹215-200 region. A fall below ₹200 looks less likely at the moment. Resistance is in the ₹280-285 region. We can expect HeidelbergCement India share price to test the ₹280-285 resistance zone in the next couple of quarters.

A decisive break above ₹285 can take the stock price up to ₹340-350 by the end of next year. You can buy the stock now. Accumulate on dips at ₹210. Keep a stop-loss at ₹160. Trail the stop-loss up to ₹275 as soon as the stock moves up to ₹295. Move the stop-loss further up to ₹305 when the price touches ₹320. Exit the stock at ₹340. If you wish to hold this stock for four years, then you can have a target of ₹450. But you will have to be able to withstand the intermediate corrections. Also, you have to make sure to revise the stop-loss higher accordingly as and when the share price moves up.

I am holding shares of Tata Teleservices (Maharashtra) Ltd (TTML). My average purchase price is ₹19.66. I want to hold it for long term, say for the next three-four years. What is the outlook?

J R Ravindranath

TTML (₹89.36): This stock has seen some wild swings over the last couple of years. TTML share price surged to a high of ₹291 in 2022 and has come down sharply from there. Though it has recovered from the low of ₹49.80 made in early 2023, this bounce is not showing strength. Ideally, you should have kept a stop-loss and exited at appropriate levels by locking some profit. By doing this, the wild swings in the prices could have been taken care of. Resistance for the stock is at ₹107. The stock is struggling to breach this hurdle.

A strong rise above ₹107 is needed to take TTML share price up to ₹140-150 levels again. Else, a fall to ₹70 cannot be ruled out. We suggest you to exit this stock at the current levels and book profit. Because, seeing levels of ₹200 again might be very difficult. Also, it may not be worth the wait. As a discipline, since you have missed to exit on the previous surge, it is better to come out of the stock now. You can consider reinvesting this sale proceeds in some other stock that looks good on the charts. You can consider HeidelbergCement explained in the previous query.

I have invested in General Insurance Corporation of India (GIC Re) during the IPO at ₹433. When the stock price fell after listing, I had accumulated at lower levels. My average price now is ₹288. Please suggest whether I should sell the stock now or hold it.

Mahendhiran Viswanathan

GIC Re (₹368.65): The stock has formed a strong base above ₹100. Although the price has declined after listing, the fall and the reversal have happened in the form of a rounding pattern. This makes the picture very strong. It is good that you had accumulated on dips and brought your average price lower. Immediate support is at ₹340.

Below that ₹300-295 is the next strong support. Keep a stop-loss at ₹330 and hold the stock. Since there is not much historical data to analyse, it is difficult the get a target levels. So, for every ₹50 rise in the share price, move your stop-loss up by ₹15. Hold the stock until your stop-loss level is hit.

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