The Hindu Business Line : Query Corner

Bharat Electronics (Rs 286.15): The overall outlook for the stock appears bullish. It could touch the Rs 320-325 range in the near term. However, a drop below Rs 274 would impart short-term weakness that could push the scrip down to the Rs 245-250 range. Existing holders could remain invested with a stop loss at Rs 274. Fresh buying may be considered with once the share price moves above Rs 300.

I am holding Cosmo Films bought at Rs 65. Please let me know if I should book my profits and re-enter or wait? I also am holding shares in IDBI Bank (Rs 26). What should be my target price on the upside? — Dr P.S.Varma

Cosmo Films (Rs 79): Though the overall outlook appears bullish, the scrip could seek lower levels in the near term. Now that the present position is profitable, it would be book at least partial profit. A portion of the holding may be sold at current market rates. And for the remaining shares, a stop loss could be placed at Rs 75. Fresh buying may be considered if the share price closes above Rs 85.

IDBI Bank (Rs 27.95): There is a strong resistance for the stock at around Rs 31. Only a break above Rs 32 would impart positive momentum in this counter. It would be safer to reduce exposure by booking profit at current levels. For the remaining holdings, stop loss may be placed at Rs 26. Fresh buying may be considered on a break above Rs 32.

I am holding Apollo Hospital (bought at Rs 112), UTI Bank (at Rs 44) and Bharti Televentures (allotted at Rs 45). Kindly advise about their prospects and expected target price and stop loss levels. — P.N. Gupta

Apollo Hospitals (Rs 118.75): The outlook for the stock is positive. It could move to Rs 135-140 levels in the near term. Existing holders could have a stop loss at Rs 107. Trailing stop loss could be employed once the scrip moves past Rs 140. A close below Rs 105 would impart short-term bearishness and would warrant reduction of holdings in the company.

UTI Bank (Rs 52.25): A break above Rs 55 would impart bullish trend that could take the stock to the Rs 62-65 range. However, it would be safer to reduce exposures now by booking profits on a portion of the holding. For the remaining shares in the portfolio, a stop loss may be placed at Rs 46. Fresh buying may be considered as and when the stock moves above Rs 55.

Bharti Televentures (Rs 38.1): The outlook for Bharti Televentures appears positive. However, the scrip could seek lower levels of about Rs 34-35 in the near term. The uptrend is likely to resume thereafter. Existing holders could remain invested while a move above Rs 41 could be used to take fresh long positions.

I have purchased 500 Balaji Telefilms shares at Rs 55 and 500 D-Link at Rs 50. At what rate I can sell these shares? I also wish to purchase Padmalaya Telefilms shares. Please advise. — Sooraj James.

Balaji Telefilms (Rs 54.3): The long-term outlook for the scrip is positive. The only doubt now is whether the stock has completed the downtrend that commenced at Rs 133 (adjusted prices) recorded in April 2002. Even in the worst-case scenario, the scrip could probably see one more leg of decline to the Rs 45-50 range. A sizable upmove would follow thereafter. Existing holders could remain invested with a stop loss at Rs 44. A move above Rs 62 would impart bullishness and could push the scrip to Rs 75-80 levels.

D-Link India (Rs 46.7): The overall outlook appears bullish. A move to Rs 60-65 levels could materialise shortly. In the near term, a drop to the Rs 44-45 level may be on the cards. A sizable uptrend may take shape on the completion of the anticipated short-term decline. There is no need to sell the shares in distress. Only a drop below Rs 40 would be a major cause of concern and would warrant dilution of holdings.

Padmalaya Telefilms (Rs 64.3): The price history in the stock is inadequate to come to any sort of meaningful conclusion on the future outlook. The stock appears to be stuck in a range and it would be safer to stay away from it for now. A break above Rs 75 could be used to take long positions in very limited dosage. — B.K.

I am holding shares of Federal Bank and Karnataka Bank. Kindly give the expected (maximum) target price. When will it reach that price? — K. Deepak

Federal Bank (Rs 154.05): The outlook for Federal Bank appears bullish. It could touch the Rs 165-170 range. The view would remain valid as long as the share price remains above Rs 134. A break below Rs 134 would impart negative trend. It would be safer to have a trailing stop loss (a strategy to protect unrealised gains - to illustrate, if one were to place a trailing stop loss on Monday, the stop would be at a price that is a couple of ticks below the previous Thursday's low). Profit booking may be contemplated in a phased manner once the scrip moves past Rs 165.

Karnataka Bank (Rs 88.75): Similar to Federal Bank, the outlook for Karnataka Bank too appears positive. A move above Rs 94 would impart positive trend and could push the scrip to the Rs 105-110 range thereafter. However, a drop below Rs 80 would blunt the positive outlook. Existing holders could remain invested with a stop loss at Rs 80. In the event of an uptrend, a trailing stop loss could be employed to protect gains.

Readers are invited to send in their queries at:

techtrail@thehindu.co.in

bkumar@thehindu.co.in

Queries can also be sent to: Tech Trail, Hindu Business Line, 859/860, Kasturi Buildings, Chennai 600 002

Responses to queries will either be e-mailed on Saturday or will be featured in this column.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Larsen & Toubro: Give Grasim the go-by

Demat account — The facility to freeze

The Santro Xing song

January-March 2003 quarter — Banks on a roll, roller-coaster for rest

The ten that stole the show

Take another look at bank deposits