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B. Krishnakumar

I would like to know the future outlook for HTMT and Eveready Industries. — Prasanna Srikakulam

Hinduja TMT (Rs 197): The near-term outlook for the stock does not appear too promising. A drop to the Rs 150-160 range appears likely. As of now, only a close above Rs 270 would reinstate bullish sentiment. Existing holders could look for opportunities to reduce exposures. Fresh buying may be contemplated once the stock enters a new bull orbit.

Eveready Industries (Rs 25.4): The overall outlook for the stock appears positive. However, the stock is in the midst of a downward correction, with a possibility of a drop to the Rs 20-21 range. Existing holders could remain invested with a stop loss at Rs 20. A move past Rs 28 could be used to take fresh long positions.

What is the outlook for HFCL and Samtel Colour. Can I hold, sell or accumulate shares of these two companies? — John Sudhakar

HFCL (Rs 31.1): The stock appears to have the potential to seek higher levels. A move past Rs 35 would confirm the positive trend and could be used to take long positions. On the contrary, a decline below Rs 27.5 would impart bearish trend. Existing holders could remain invested with a stop loss at Rs 27.5.

Samtel Colour (Rs 26.6): The share price of the company has been seeking lower levels in the recent weeks. The near-term outlook for Samtel appears bearish. A drop to the Rs 20-22 range appears likely. There is no compelling reason to take long positions in the stock at current price levels. Profit booking may be considered if the present holding is "in-the-money".

Kindly give your view on Kochi Refineries and MRPL. I am planning to enter these scrips. — V. Ramachandran

Kochi Refineries (Rs 107.4): The stock appears to have some upside potential from current levels. The move past Rs 116 would have bullish implications while a drop below Rs 96 could impart bearish trend. However, a move towards the Rs 120-125 range is the preferred view now. Long positions may be considered once the share price moves past Rs 116.

MRPL (Rs 32): The scrip could seek higher levels in the near term. A move towards Rs 37-39 levels appears likely. Existing holders could remain invested with a stop loss at Rs 26, while a move past Rs 34 could be used to take fresh long positions.

I am holding MIRC Electronics at the rate of Rs 430 and Morepen Labs at Rs 16.5. What is the outlook for these stocks? — N. Gopalakrissnan

MIRC Electronics (Rs 207.75): The overall outlook for the stock appears positive. There appears to be no technical reason to dilute holdings at current levels. The stock (trading ex-bonus now) could seek higher levels in the near term. A move towards the Rs 245-250 range appears likely. Existing holders could remain invested with a stop loss at Rs 190.

Morepen Labs (Rs 8.8): Taking into account the cost of acquisition and the recent price action, it would be better to remain invested in this company. Though there is still no evidence of the reversal of the recent downtrend, a significant upmove can take shape once the ongoing decline gets arrested. Investors who are not willing to take risk can reduce exposures at current levels. Investors with a risk appetite can remain invested in the hope of an upturn.

I was following your report on Sesa Goa that it would take support at Rs 160 and the outlook is positive and can go up to the Rs 240 level. Can we buy at current levels? We have 1000 Shares of Nava Bharat Ferro Alloys at Rs 70. What are the prospects of the scrip as this is slowly sliding down? — T. Janardhan Reddy

Sesa Goa (Rs 188.3): The outlook for the stock continues to remain positive. The earlier view of a move towards Rs 240 continues to remain valid. Existing holders can remain invested with a stop loss at Rs 155. A move above Rs 205 could be used to take fresh long positions. A move below Rs 155 would negate the positive outlook and could impart bearish trend.

Nava Bharat Ferro Alloys (Rs 94.1): The long-term outlook for the stock appears positive. However, taking into account the entry price and the recent trend in the stock, it would be better to book profit for a portion of the holding. For the remaining position, a stop loss may be employed at Rs 88. A move past Rs 113 could be used to take fresh long positions.

What are the prospects for Jindal Vijayanagar Steel and Ajanta Pharma? — R.K. Kamath

Jindal Vijayanagar (Rs 20.4): The overall outlook for the stock appears bullish. A move towards the Rs 28-30 level is a distinct possibility. Existing holders could remain invested while fresh buying may also be considered with a stop loss at Rs 17. A drop below Rs 14 would negate positive outlook and could impart bearish trend.

Ajanta Pharma (Rs 40.1): The share price of the company has the potential to seek higher levels in the near term. A close above Rs 45 would be an early indicator of the onset of a positive trend. A move towards the Rs 53-55 range appears likely. Existing holders could remain invested with a stop loss at Rs 37. Risk-averse investors can wait for the share price to move past Rs 45. Risk-seeking traders could take long positions at current levels with a stop loss at Rs 37.

Can I purchase Gail and Omax Auto at current prices? — C.P. Arora

Gail (Rs 132.7): The share price of the company could move up further from current levels. Though there is a possibility of a short-term downtrend to the Rs 105-110 range, such dips could be used to take long positions, as the long-term trend appears bullish. The stock could eventually move to the Rs 160-170 range within the next four to six months. Fresh buying may be considered in very small lots at current levels as there is a risk of a short-term decline. Evidence of support at around Rs 110 could be used to enhance exposures.

Omax Auto (Rs 62.9): Similar to Gail, the share price of Omax Auto too could seek higher levels. A move to the Rs 78-80 range appears likely. Only a close below Rs 50 would negate the positive outlook. A move past Rs 68 could be used to take fresh long positions with a stop loss at Rs 58.

I am holding Bajaj Auto 100 shares bought at Rs 480 and Elgi Equipments 1000 shares at Rs 26. What is the outlook and can I hold the shares? — Shankar

Bajaj Auto (Rs 670.15): The stock appears headed for higher levels in the near term. Long-term investors can take exposure in the stock. As of now, only a drop below Rs 600 would negate the positive outlook. Though the stop loss might appear far off from the current market price, the significant upside potential would justify having a stop loss at Rs 600. There is no technical reason to liquidate holdings in a hurry at current levels.

Elgi Equipment (Rs 43.0): The share price of the company has moved in line with earlier recommendations. The overall outlook continues to remain bullish with an eventual move to the Rs 60-65 range being a distinct possibility. Though the scrip is unlikely to motor ahead to this target zone immediately, a steady upward progress appears to be on the cards. Existing holders could remain invested with a stop loss at Rs 36 while a move past Rs 48 could be used to take fresh long positions.

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

We would 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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