The Hindu Business Line : Query corner

I am holding HDFC Bank bought at Rs 260. Is it good to hold this share for medium-term? Kindly give the stop loss price also. — Thomas Jose & Ajay Shah

HDFC Bank (Rs 247.1): This is one of the better long-term bets in the banking sector. The overall outlook for the stock appears positive. However, the share price could drop to the Rs 220-225 range in the near term. This, however, does not negate the long-term positive outlook. The stock is likely to seek the Rs 300-325 range in the long term. Given this view, it would be better to hold on and take profit once the stock moves past Rs 300.

Can I invest in TVS Electronics, Voltas and ONGC at current price? — Girdhari L. Chhabriya

TVS Electronics (Rs 70.5): The near-term outlook for the stock does not appear positive. Due to relatively high price volatility, it would be safer to adopt a cautious approach towards the stock. Only a move past Rs 80 would impart positive trend. Till such time, a drop to the sub Rs 50 level would be the preferred view.

Voltas (Rs 62.8): The stock is confined to a relatively narrow band in the recent months. A break above Rs 70 would impart some sort of positive momentum. There is no compelling technical reason to warrant long positions based on recent chart patterns. Further upside potential is not ruled out. But we would not recommend long positions in the stock for want of conclusive bullish patterns.

ONGC (Rs 507.6): The upside from current levels appears relatively limited for now. Only a move above Rs 530 would have some positive implications. However, taking into account the recent upward trend in price, it would be better to stay away from ONGC. Existing holders could protect unrealised profits by employing trailing stop loss (placed a few ticks below the low recorded two days before the latest trading day).

I am holding shares of Indian Oil Corporation bought at Rs 380. Should I keep them or sell? — Vasudevan

Indian Oil (Rs 403.7): The stock appears to be losing upward momentum. A drop to the Rs 340-350 range could materialise if a short-term correction sets in. It would be safer to book profit for a portion of the holding. For the remaining, a stop loss could be employed at Rs 385. Trailing stop loss could be employed if the stock moves up past Rs 430.

What is the outlook for Garware Polyster? What is price target and stop loss? — Rahul Binnani

Garware Polyester (Rs 33.15): The overall outlook appears bullish. Existing holders could remain invested with a stop loss at Rs 30. Fresh buying may be considered either on evidence of support at the Rs 26-27 range or on a break above Rs 40. The stock could eventually seek the Rs 48-50 range in the long term. Investors willing to take delivery and wait for a while could take long positions in this stock.

I have a large holding in Jaiprakash Industries. Please advise me about the prospects of the stock in short and long term. — Neeraj Gupta

Jaiprakash Industries (Rs 44.7): The overall technical picture is not very clear at this juncture. A close above Rs 48 would have positive implications. However, there is no compelling reason to take long positions now. As the outlook is unclear, it is better to have a trailing stop loss in place if the share price moves up. For now, a stop may be placed at Rs 39.

I bought a huge chunk of Tata Elxsi shares at Rs 75. Should I hold or exit? — Sivasamy

Tata Elxsi (Rs 73.65): The near-term outlook appears positive. A move towards the Rs 82-85 range appears likely. Remain invested with a stop loss at Rs 69. A trailing stop loss could be employed to protect unrealised gains once the stock moves past Rs 80.

What is the outlook for Shasun Chemicals and Orchid Pharmaceuticals? — Pranav Kale

Shasun Chemicals (Rs 190.1): The overall outlook appears positive. A move to the Rs 240-250 range appears likely in the next few months. Remain invested with a stop loss at Rs 160. A move above Rs 215 could be used to take fresh long positions. The view on Orchid Chemicals has been covered elsewhere on this page. — B.K.

What are the prospects of investing in Arvind Mills, Polaris Software and Wipro? — T.N. Sivasubramanian

Arvind Mills (Rs 38.1): The stock is now stuck in a narrow range. But the overall outlook appears positive. A move towards the Rs 48-50 range appears likely. A close above Rs 42 could be used to take fresh exposures in the company. Existing holders could remain invested.

Polaris Software (Rs 109.1): The scrip could seek higher levels in the near term. The only doubt is whether the stock would resume the uptrend straightaway or after a further drop to sub-Rs.99 levels. Fresh buying may be considered either on drop to the Rs 90 level or on a move above Rs 130.

Wipro (Rs 909): The stock has the potential to yield significant returns over a slightly longer timeframe. A move past the stiff resistance level of Rs 960 would be an early indicator of a further rally. Only a drop below Rs 790 would negate the positive outlook.

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

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