What is the outlook for Kaveri Seed Company? Can I buy this share for short-term at current levels?
Sultan Mohideen, Chennai
Kaveri Seed Company (₹910.95): The trend is down. The stock made a high of ₹1,200.70 in mid-September this year and has come down sharply by over 20 per cent from there. The outlook is bearish. Support is around ₹860 which is holding well for now. But strong resistance is in the ₹1,000-1,020 region. Although an intermediate rise to ₹1,000 is a possibility in the near term, a rise past ₹1,020 is less likely. As such, we can expect the stock to break below ₹860 in the coming weeks.
Such a break can drag Kaveri Seed Company share price down to ₹800 and even ₹700 in the coming months. As aforementioned, though a rise to ₹1,000 is possible, it will be very risky to take that trade since the broader trend is down. The stock will become a convincing buy only if it breaks above ₹1,020 from here. Such a break will clear the way for a revisit of ₹1,200 levels. So, for now, it is better to stay out of this stock.
I have purchased shares of Som Distilleries & Breweries at ₹143. I can hold it till the end of this fiscal year. Please suggest what I must do.
Venkatesh D
Som Distilleries & Breweries (₹106.85): The stock has been in a strong uptrend since 2022. The share price touched a new high of ₹155.9 in October last year. Thereafter the stock has been coming down. However, this fall is just a correction within the broad uptrend. Immediate support is at ₹101. Below that the ₹97-94 region is a strong support. As long as the stock stays above this support zone, the uptrend will remain intact.
A fresh rise from the ₹97-94 support zone can take Som Distilleries & Breweries share price up to ₹170 in the coming months. You can consider accumulating this stock at ₹102 and ₹98. Keep a stop-loss at ₹91. Move the stop-loss up to ₹120 as soon as the stock goes up to ₹145. Revise the stop-loss further up to ₹150 when the price touches ₹160. Exit the stock at ₹165. In case the stock falls below ₹94, exit at the stop-loss mentioned above.
What is the medium and long-term outlook for Schaeffler India? I have bought this stock at ₹4,800.
Elango
Schaeffler India (₹3,995.35): The stock has been in a strong uptrend since June 2020. It hit a new high of ₹4,950 in June this year. The share price has come down sharply from there. However, the broader uptrend remains intact. The recent fall is a correction within the overall uptrend. There is room for the share price to fall further from here. Support is in the ₹3,500-3,200 region. The chances of a fall to test this support zone in the next couple of months cannot be ruled out.
However, after this fall, we can expect the stock to rise back and resume the uptrend. That leg of upmove will have the potential to take Schaeffler India share price up to ₹5,500-6,000 over the long term. You can consider accumulating the stock at ₹3,550 and ₹3,380. Keep the stop-loss at ₹3,080. Revise the stop-loss higher to ₹3,900 as soon as the stock goes up to ₹4,400. Move the stop-loss further up to ₹4,800 when the price goes up to ₹5,200. Exit the stock at ₹5,350.
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