Tech Query: What is the long-term outlook for Colgate-Palmolive?

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I have 100 Colgate-Palmolive shares bought at ₹1,725. I can keep it for a year or two. Should I keep it or recognize the loss?

Nirodkumar Das

Colgate-Palmolive (₹1,600): Structurally, this stock has been in a strong uptrend since 2005. Since then, the 200 week moving average (WMA) has always provided strong support and stopped corrective declines each time. The same pattern repeated itself with the recent correction as well. The corrective drop from the high of ₹1,823, made in July last year, found support in the 200-WMA in December. After consolidating above the 200-WMA and forming a solid base, Colgate-Palmolive’s stock entered a new rally stage from mid-March this year.

The general upward trend is still intact. So you don’t have to recognize the loss and you can keep it. If you have the capacity to buy more, you can very well do so at current levels. Keep a stop-loss at ₹1,320. The stock has the potential to rise towards ₹1,950 from here. Revise the stop-loss up to ₹1,670 when the stock goes above ₹1,730. Move the stop-loss up to ₹1,770 as soon as the stock touches ₹1,860. Book profit at ₹1,950. 200-WMA is currently at ₹1,404. Only a decisive weekly close below this level will indicate a trend reversal. In this case, the stock will come under renewed selling pressure and may fall sharply.

I bought shares of Mangalore Chemicals & Fertilizers. Can you please give me the short and medium term outlook for this title?

Mohammad Ramzan

Mangalore Chemicals & Fertilizers (₹124): The stock is hovering around a new high. On the chart, there is strong support at ₹105. As long as the stock holds above this support, it may reach new highs in the coming weeks.

An increase to ₹145 is possible initially in the short term. Thereafter, a corrective decline to ₹120 can be seen. The trend will however continue to remain bullish. A further rally leg from ₹120 can then take the stock to ₹165 in the medium term. You did not mention your purchase price. However, you can stick with the strategy given below. Keep the stop-loss at ₹98 and hold the stock. Move the stop-loss to ₹116 as soon as the stock rises to ₹143. Move the stop-loss to ₹145 as soon as the stock touches ₹155. Exit the stock at ₹160. The bullish outlook will only be negated if there is a sharp decline below ₹105. In this case, the price can go down to ₹90.

I bought shares of Shree Cement Ltd a few months ago at ₹24,700. What is the short and long term view of this stock? Should I continue to hold it or exit at current levels?

Ganesan Viswanathan

Cement Shree (₹25,933): You bought the stock reasonably at a better level. The stock fell to ₹21,667 earlier in March and has rallied quite nicely from there. The 200-week moving average halted the slide that had started from the April 2021 high of ₹32,050. This keeps the long-term uptrend intact.

The stock may hit ₹27,000 in the next couple of weeks. A strong break above ₹27,000 will pave the way for a further rise to ₹30,000 over the next three months. A short-lived corrective dip to ₹28,000-27,000 cannot be ruled out thereafter. But the general trend will remain upwards. A further rise from the region of ₹28,000 to ₹27,000 thereafter will have the potential to break ₹30,000. Such a break will see the stock surge towards ₹35,000 in the long run. Keep a stop-loss at ₹20,300 and hold it. Move the stop-loss up to ₹26,600 as soon as the stock reaches ₹29,500. Revise the stop-loss upwards to ₹31,300 as soon as the stock reaches ₹32,500. Accounting profit at ₹35,000.

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Published on

April 23, 2022

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