I am an investor in India’s State Bank (SBI) with acquisition cost per share at ?854. How should I perceive the short-term and long-term prospects? Currently, SBI shares have been within a price range between ?780 and ?840 for approximately a quarter of a year. If the stock manages to break convincingly above the ?840 level, this could bring strong bullish momentum, potentially leading the price to a level in the vicinity of ?1,000-1,100 in a mid-term horizon.
This upward trend is plausible but may require some patience. There is a robust support level at ?710 which could limit any drops if the stocks start trading below ?780. The bullish momentum towards ?1,000-1,100 can only be negated if SBI’s stock price drops beyond ?710. In such scenario, a value decrease to ?630 could be seen. However, such drastic reduction is not highly probable.
The current recommendation would be to hold onto the stock. If the price reaches ?740 following a dip, it would be a good opportunity to accumulate more shares. To manage risk, a stop-loss should be placed at ?690. As the share price appreciates, stop-loss should be moved upwards accordingly – ?820 when the asset price reaches ?880, further to ?900 and ?980 when the price hits ?960 and ?1,040 respectively. It would be advisable to exit the position completely when the price reaches ?1,100.
I am also an investor in Suzlon Energy, having bought shares at a price of ?65. Should I maintain my holding or abandon ship? Unfortunately, since this June, Suzlon Energy’s stock price has followed a downward trend, preserving a broader negative momentum that has been in place since September of last year. The stock has a significant support level at ?55. A fall below this could probably lead to a decrease in share price down to ?47.
In the unfortunate scenario where the share price drops even further beyond ?47, there is potential for a steep fall to ?35-33. Ideally, in order to shift the current outlook to a bullish stance, the stock price should exceed ?70, thus enabling a comeback to ?80-85. However, given the presently negative short term market sentiment, a reduction to ?55 or even to ?47 seems more likely to occur first.
Consequently, it may be wise to consider selling off the stock now to avoid further losses, instead of keeping hopes for a sudden reversal. What about the short-term prospect for NTPC stocks? Trading at ?337 currently, NTPC has exhibited a downward trend since October of the previous year. The short-term future price action appears to be uncertain at present.
The price of NTPC stocks has been stuck between ?320 and ?345 for a considerable duration of more than two months. It is likely to face resistance at ?365, whereas a significant support exists at ?295. Hence, the broad price range within which NTPC is expected to trade is between ?295 and ?365. Within this range, the stock could move in either direction depending on future developments.
A break out of this position either way will be a decisive factor in predicting the subsequent move. If the price breaks above ?365, it would signify bullish sentiment, potentially leading to ?450 and even higher. Conversely, if the stock drops below ?295, it could spark a bearish trend that could pull the stock down to ?260-?250.
The recommendation for NTPC would be to stay on the sidelines for now to avoid being caught out by sudden movements. Any trading strategies for this particular stock should align with the direction of a breakout from the ?295-?365 range. I also hold shares from Sula Vineyards, bought at an average cost of ?400. I am more of a long-term investor.
Sula Vineyards has registered a pronounced downtrend starting from the last week of January the previous year. This trend still holds strong, with no visible signs hinting towards a bullish reversal. Considerable resistance levels position at ?288 and ?330. Any signs of a bullish trend reversal would likely require the stock price to exceed ?330.
Once this happens, the share price could potentially rise to the levels of ?450 and ?500. However, the stock also faces an immediate support level at ?240, and breaking below this could result in the share price dropping down to ?160 or perhaps even lower. As such, selling the stock at the current point and acknowledging the loss might be a prudent approach.
In future investments, it would be sound to have a stop-loss order at the time you enter the market. This would be instrumental in mitigating losses in case your predictions do not materialize.
The post Assessing Short and Long-Term Prospects for Top Indian Stocks appeared first on Real News Now.
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