The Hindu Business Line : Query Corner

The near-term outlook GAIL (Rs 109.35) for the stock appears slightly weak. A drop to the Rs 99-100 range appears likely. The long-term outlook would depend on the price action in the next few weeks. A drop below Rs 94 would have negative implications while a move past Rs 125 would impart positive sentiment. Taking into account the possibility of an uptrend, existing holders could remain invested with a stop loss at 94. Fresh buying may be considered on a move past Rs 125.

What is the price target of Ceat and outlook for Thomas Cook? — Radha Krishnamurthy & S. John Melt

The outlook for Ceat (Rs 43.85) appears positive. A move towards the Rs 53-55 range appears likely. Only a drop below Rs 38 would negate the positive view. Remain invested with a stop loss at Rs 37. A move past Rs 48 could be used to take long positions with a stop loss at Rs 43.

The overall trend in Thomas Cook (Rs 234.15) appears bullish. The stock could yield returns in excess of 25-30 per cent for patient investors. Only a drop below Rs 200 would negate the positive view. As of now, there is no compelling reason to sell this stock at current levels.

What is the outlook for Nagarjuna Fertilisers and Morepen Labs ?— Rajiv Virwani & Baljeet Arora

Nagarjuna Fertiliser (Rs 7.65) is in the midst of a sideway correction. The recent uptrend is likely to continue on the completion of this correction. A drop to the Rs 6-6.3 range appears likely in the worst-case scenario. A move past Rs 9 would impart positive trend and could pave the way for a rise to the Rs 12-13 range. Existing holders could remain invested with a stop loss at Rs 5.7.

The outlook for Morepen Labs (Rs 14) does not appear too positive. A drop below Rs 13 could have negative implications while only a move past Rs 18 would impart bullish momentum. Remain invested with a stop loss at Rs 12.5.

I have stake in IPCA Labs and Infosys. Should I retain these shares? — Jai Prakash Goyal

The outlook for IPCA Laboratories was covered in the earlier week. There is no change in the earlier view. A move towards the Rs 400-425 range appears likely. There is no reason to dilute holdings at current levels. Remain invested with a stop loss at Rs 280.

The outlook for Infosys has been covered elsewhere in this page. While the near-term outlook appears bearish, a sizable upmove could take shape after the completion of the expected downtrend. Remain invested and consider fresh buying on evidence of support at around the Rs 1500-1800 range.

What is the near-term outlook for Indo Rama Synthetics? — Sundarajan

The overall outlook for Indo Rama Synthetics (Rs 39.45) appears positive. A move towards the Rs 50-55 range appears likely. Existing holders could remain invested with a stop loss at Rs 30. A move past Rs 42 would be used to take fresh exposures with a stop loss at Rs 35.

I have Purchased Bata at Rs 28. Please advise me on its outlook. — S.John Melt

The share price of Bata (Rs 44.2) could seek higher levels in the near term. A move to the Rs 55-60 range appears likely. In the near term, a drop to the Rs 38-40 range is not ruled out. Existing holders could remain invested while a move past Rs 50 could be used to take fresh equity exposure in the stock. Only a drop below Rs 35 would warrant dilution of holdings in the company. Till such time, there is no need to sell this stock in distress.

I am currently holding MTNL (at Rs 130). What is the chance of these shares touching Rs 200 in long term? — Sandip Nath

The near-term outlook for MTNL (Rs 115) appears positive. There is a strong overhead resistance at about the Rs 130 level and the stock does not appear to have potential to move past this range. A move towards Rs 200 appears far-fetched.

What is the outlook for Bhartiya International? — Suresh

The outlook for Bhartiya International (Rs 30.5) appears positive. Though there is a possibility of a short-term downtrend, an eventual rise to the Rs 40-45 range appears likely. Remain invested with a stop loss at Rs 25.

I have purchased 1,000 shares of SAIL. Could you please advise me at what rate I should sell. — Parveen

The outlook for SAIL (Rs18.8) was covered earlier in edition dated June 15. The stock has moved up as anticipated. The overall outlook continues to remain bullish. A move towards the Rs 23-25 range appears likely. Remain invested with a stop loss at Rs 15. A move past Rs 20 could be used to take fresh exposures with a tight stop loss.

Please let me know the prospects of Macmillan India. — Devadas

The outlook for Macmillan India appears extremely positive. A minimum rally of about 50 per cent appears likely within a year's time. Remain invested and use price dips to take further exposures. This is a stock for patient investors willing to wait for a while and not for short-term punters.

What is the outlook for Siemens and Gujarat Alkalies? — Mythili.

The overall outlook for Siemens appears positive. A move towards the Rs 450-460 range appears likely. Remain invested with a stop loss at Rs 340. Fresh buying may also be considered by those willing to wait for a few months. Regarding Gujarat Alkalies, the technical outlook does not appear too clear at this point in time.

What is the outlook for BEML? — Raju

The overall outlook for BEML appears positive. Though there could be a short-term decline to about the Rs 80-82 range in the worst-case scenario, an upward rally is likely to resume thereafter. An eventual move to Rs 115-120 levels is not ruled out. Given the possibility of an upmove, it would be safe to retain at least 25-30 per cent of the present holding. For the balance, a stop loss at Rs 88 could be placed.

What is the outlook for Elder Pharma and Ajanta Pharma? — Zulfi Shroff

The outlook for both the stocks is bullish. Elder Pharma could comfortably move to Rs 75-80 levels while Ajanta Pharma could move to the Rs 55-60 range. Existing holders could remain invested with a close stop loss while aggressive traders may also consider fresh buying.

What is the outlook for Padmalaya Telefilms and Cosmo Films? — Sridevi

It is fairly difficult to assess the technical outlook for Padmalaya Telefilms for the want of adequate historical price data.

In the case of Cosmo Films, the stock appears to be on the verge of completing a major top. Remain invested with a stop loss at Rs 89. A trailing stop loss could be employed to protect unrealised gains once the stock moves above Rs 110.— B.K.

I recently booked profits in J.B.Chemicals and Unichem Labs. Is it safe to buy these stocks at around the Rs 150-175 range? — Dinesh & Zulfi Shroff

The outlook for both the stocks appears positive. Chances of a drop to the Rs 150-175 range appear unlikely. Fresh buying may be considered on declines in both the stocks. J.B.Chemicals could seek Rs 245-250 range in the near term.

A move past Rs 280 could pave the way for a major bull run in this stock. In the case of Unichem, the stock could seek Rs 270-280 levels in the near term. Fresh exposures may be considered in these stocks with an appropriate stop loss in place.

Readers can send in their queries, on not more than two companies, to

techtrail@thehindu.co.in

Queries can also be sent by post to: Tech Trail, 859/860 Kasturi Buildings, Anna Salai, Chennnai 600 002

It would be our endeavour to answer as many queries as possible. However, constraints of space will limit the responses featured under this column.

(Note: The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

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