Technical Analysis: SJS Enterprises, SKF India, Sharda Cropchem

What is the outlook for SJS Enterprises? Is it a good time to enter this stock at the current levels? My holding period will be two-three years.

Meghna, Delhi

SJS Enterprises (₹670.80): This stock got listed in November 2021. So, there is very limited data to do a detailed technical analysis for the time frame of two-three years that you had mentioned. However, we will try here to give an outlook with the limited data available so far. The stock has been in an uptrend since April this year. But this uptrend seems to have paused around ₹730 last month. Resistance is now in the ₹720-730 region. Support is in the ₹630-620 region. A break below ₹620 can trigger a corrective fall to ₹600-590 initially.

A further break below ₹590 can drag SJS Enterprises’ share price down to ₹560-550. A fall beyond ₹550 is less likely. As such, we can expect the stock to reverse higher and see a fresh rally. That can take SJS Enterprises’ share price up to ₹760-770 in the second half next year. Wait for dips. Buy the stock at ₹565. Keep a stop-loss at ₹510. Trail the stop-loss up to ₹590, when the price moves up to ₹640. Move the stop-loss further up to ₹690, when the price touches ₹720. Exit the stock at ₹740.

I have bought shares of SKF India at ₹1,600. What is the outlook? Should I continue to hold the stock or exit at the current levels?

TVS Prakash Rao

SKF India (₹4,974.35): You have made a good entry into this stock. Since you have a huge profit in this position, it is very important to protect it. As seen from the chart, the stock has been in a strong uptrend. There is no sign of a reversal yet and the uptrend is intact. So, you can continue to hold it. Strong support is in the ₹4,600-4,400 region. Though there can be an intermediate dip to test these supports, it will not alter the trend. 

We can expect the stock to resume the uptrend from the ₹4,600-4,400 support zone. That leg of rise will have the potential to take SKF India share price up to ₹7,000-7,200 over the next one year. Keep a stop-loss at ₹4,350. Move the stop-loss up to ₹5,400, as soon as the stock moves up to ₹6,100. Move the stop-loss further up to ₹6,300, when the price touches ₹6,600. Exit the stock at ₹6,900. In case the stock breaks below ₹4,400 from here itself, then it will indicate a trend reversal. So, you have to exit all your positions at the above-mentioned stop-loss level of ₹4,350.

I have shares of Sharda Cropchem. What is the long-term outlook for this stock?

Y. Sultan Mohideen

Sharda Cropchem (₹408.35): The stock has been in a strong downtrend since June last year. There is a cluster of supports in the ₹400-340 region. Even if these supports hold, Sharda Cropchem stock price has to rise past ₹500 to indicate a trend reversal and become bullish. Only in that case, the chances of the stock price going back to the ₹750-levels will come into the picture.

But as of now, there is no clear sign of a trend reversal happening. Even if that happens, it may take a lot of time. In case the stock declines below ₹340, the price can tumble to ₹250 and even lower. Since you have not mentioned your purchase price, it is difficult to give a clear advice. If you had bought the stock above ₹500, then it is better to exit and book loss at the current levels.

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