We zoom in on the prospects of Asian Paints, as also the prospects of two other stocks тАФ Piramal Enterprises and Shivalik Bimetal Controls
What is the technical outlook for Asian Paints?
Kaushik
Asian Paints (тВ╣2,984.80): The stock has been in a prolonged consolidation phase for more than two years now. The overall trend is up. The current consolidation is happening in the form of a pennant formation. Important support is around тВ╣2,900. Below that, the region around тВ╣2,700 is a very strong support. We expect the stock to sustain above тВ╣2,900 itself. As such, the chances are high for Asian Paints share price to go up to тВ╣3,500-3,600 over the next couple of quarters. A decisive break above тВ╣3,600 will be very bullish from a long-term perspective.
Such a break will take Asian Paints share price upto тВ╣4,700-4,800 over the next couple of years. Long-term investors with a minimum time-frame of two years can buy Asian Paints now. Accumulate if a dip to тВ╣2,800 is seen. Keep a stop-loss at тВ╣2,320. Trail the stop-loss up to тВ╣3,300 as soon as the stock moves up to тВ╣3,850. Move the stop-loss further up to тВ╣4,100 when the price touches тВ╣4,400. Exit the stock at тВ╣4,700. The bullish view could go wrong if the stock declines below тВ╣2,700. In that case, a fall to тВ╣2,400 is possible.
What is the outlook for Piramal Enterprises? Can this stock be bought at current levels? I am a long-term investor. I can hold the stock for a minimum of five years.
Pooja Sharma, Delhi
Piramal Enterprises (тВ╣932.70): The long-term outlook is bullish. The bounce from the low of тВ╣630.20 made in March 2023 is very significant. It has happened from just above the 200-month moving average, which is currently around тВ╣638. The recent fall from the high of тВ╣1,140 made in September last year, is just a correction. The stock is getting support around тВ╣850 over the last three months. Below that, the region around тВ╣730 is a very strong support. Resistance is at тВ╣1,140. A strong break above it can take Piramal Enterprises share price up to тВ╣1,530 or тВ╣1,650 over the next couple of years.
If the stock moves up from here itself and breaks above тВ╣1,140, then that would form an inverted head and shoulder pattern on the charts. This will strengthen the bullish case. Long-term investors can buy Piramal Enterprises now. Accumulate on dips at тВ╣780. Keep a stop-loss at тВ╣570. Trail the stop-loss up to тВ╣1,120 as soon as the stock moves up to тВ╣1,260. Move the stop-loss further upto тВ╣1,310 when the price touches тВ╣1,380. Exit the shares at тВ╣1,450.
What is the three-month outlook for Shivalik Bimetal Controls?
Ashish
Shivalik Bimetal Controls (тВ╣555.30): The stock price surged to a high of тВ╣730 in July last year and then witnessed a sharp fall. The price has been oscillating between тВ╣500 and тВ╣600 since August last year. The overall trend is still up. The region around тВ╣500 will be a very crucial support. Only a decisive break below тВ╣500 will indicate a trend reversal. That can drag the stock price down to тВ╣460 initially and then to тВ╣400 and lower eventually. As long as the stock sustains above тВ╣500, the trend will remain up.
Resistance is around тВ╣630. A decisive break above тВ╣630 will open the doors for Shivalik Bimetal Controls share price to target тВ╣950 on the upside from a long-term perspective. If you want to play this stock for a three-month period, then wait for dips and buy at тВ╣520 and тВ╣510. Keep a stop-loss at тВ╣480. Trail the stop-loss up to тВ╣540 when the price moves upto тВ╣565. Revise the stop-loss further up to тВ╣570 when the price touches тВ╣590. Exit at тВ╣610.
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