Nooresh Merani of Analyse India told CNBC-TV18, "On longer term chart Hindustan Construction Company (HCC) has been in a terrible downtrend but as we look in the near term charts, the stock has made a good move from Rs 18 to Rs 23 with decent volumes. This gives an indication that the stock must have bottomed out closer to Rs 18-19 levels. So, one can continue to hold on keeping a stoploss at Rs 18-19. However, on the upper side we are looking at closer to Rs 35-40 is where major resistance is on a longer term chart." He further added, "The biggest problem with averaging is most of the investors tend to average on the way down. The better part as we look on technical is to buy on higher tops, so when we keep on making higher tops, it's the best way to average. So a lot of stocks which have been in the uptrend over the last couple of years, for example a pharmaceutical company have continued. So the best case is to average on the upside rather than on the downside."
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