I bought 200 shares of Marico at Rs 340. After my purchase, the stock witnessed a downfall and, at present, it is hovering around my purchase price. So what should I do now?
- Anil Singh
HOLD WITH THE STOP LOSS OF RS 330 FOR EXPECTED TARGET OF RS 380-390
Marico is currently trading at Rs 346.50. Its 52-week high/low stand at Rs 387.85/Rs 282.85 made on August 24, 2018 and October 11, 2018, respectively. After hitting its 52-week high, the stock resisted near the long-term channel resistance and, thereafter, the stock corrected sharply. The correction halted near about 61.8 per cent retracement level of the entire upmove from December 2016 to August, 2018. As on weekend of November 2, 2018, the stock on the weekly chart formed a significant bullish candle . The indicators and oscillators are indicating positive bias, which suggests further upside in the stock. In the short term, the level of Rs 330 is likely to act as a strong support zone as it is 200-day EMA. We suggest holding the stock with a stop loss of Rs 330 and the expected target in the medium term would be Rs 380-390.