The Hindu Business Line : Query corner

IFCI (Rs 15.7): The share price of the company could seek higher levels in the near term. However, there is a possibility of a short-term decline to the Rs 10-12 range. In any case, the scrip is likely to touch the Rs 27-28 range eventually. Existing holders could remain invested. A move past Rs 21 could be used to take fresh exposures. All long positions would warrant a stop loss at Rs 9.8.

Nilkamal Plastics (Rs 38.7): The recent price pattern does not provide a very clear picture about the long-term trend. Only a move past Rs 49 would impart a positive trend. A drop below Rs 36 could see the price seeking the Rs 28-30 range. Existing holders could remain invested with a stop loss at Rs 36.

I am holding shares of Oriental bank of Commerce. In the current market trend can I retain it or sell? — A. Karthikeyan

Oriental Bank of Commerce (Rs 173.8): While the overall outlook for the stock is positive, the stock could seek lower levels in the near term. There is a possibility of a drop to the Rs 150-155 range. A move past Rs 190 would impart positive trend and would push the stock into a new bull orbit. There is no technical reason to reduce exposures in a hurry at current levels. Hold on with a stop loss at Rs 152.

I am holding 1,000 shares Apar Industries (formerly Gujarat Apar) bought at Rs 11 and 500 shares of C.G.Igarashi bought at Rs 15.00. What is outlook for these shares? Shall I liquidate them or hold? — Vinay

Apar Industries (Rs 33.6): The stock has potential to seek higher levels. Only a drop below Rs 29 would negate the positive outlook. A break above Rs 38 would push the stock to Rs 48-50 range. Remain invested with a stop loss at Rs 29. A close above Rs 38 could be used to take long positions.

C.G.Igarashi Motors (Rs 58.4): The stock is in the midst of a major uptrend. However, the share price could seek lower levels in the near term. The uptrend would resume once the anticipated decline gets completed. On the downside, a drop to the Rs 48-49 range is not ruled out. However, the stock eventually is likely to push towards the Rs 85-90 range

What is the outlook for NIIT? Can I take position in derivatives segment at this level for the month of September? — Anil

NIIT (Rs 137.2): The overall outlook for the stock is positive. A move towards the Rs 158-160 range appears likely. A drop below Rs 122 would negate the positive outlook. A break above Rs 146 would impart positive trend. It would be safer to wait for the share price to move past Rs 146 before taking any long positions.

I am holding 300 shares of Pentamedia Graphics and 200 shares of Centurion Bank bought at Rs 11.75 and Rs 12 per share respectively. Can I hold these shares for a longer-term period? — Babu

Pentamedia Graphics (Rs 12.2): There appears to be significant upside potential for the stock from current levels, though it could drop to the Rs 8-9 range in the near term. Considering the cost of acquisition and the quantity of shares purchased, it would be worthwhile to stay invested, as the overall trend is positive. Long-term investors can hold on and only a drop below Rs 8 would warrant dilution of holdings.

Centurion Bank (Rs 14): The stock is stuck in a narrow trading band in the past few weeks. Only a break above Rs 18 would reinstate positive trend while a drop below Rs 12.5 could lead to a further decline. Hold on with a stop loss at Rs 12.5.

I have purchased Alok Textiles at Rs 31.50 and Bank of India at Rs 52.00. What are the prospects for the two scrips? — K. Doraiswami & C.Aswin

Alok Textiles (Rs 26.8): The overall outlook for the stock is positive. The scrip enjoys a strong support at the Rs 21-22 range. A move past Rs 33 would reinstate positive trend. A drop below Rs 22 would warrant closure of long positions. Remain invested with a stop loss at Rs 22.

Bank of India (Rs 53.8): The share price of the company could move towards the Rs 68-70 range. Only a drop below Rs 45 would negate the positive outlook. Remain invested with a stop loss at Rs 45. A move above Rs 59 could be used to take fresh long positions.

I am holding Bank of India bought at Rs 47.5 and Titan at Rs 79. What is the outlook of these scrips? — C.Aswin

Bank of India (Rs 53.8): The overall outlook for the stock is positive. The detailed outlook is carried elsewhere in this page.

Titan Industries (Rs 77.5): The stock is ruling close to the critical resistance level of the Rs 82-85 range. Only a close above Rs 90 would impart positive trend. A failure to move past this level and a subsequent drop below Rs 64 would impart bearish trend. Remain invested with a stop loss at Rs 74. If the stop loss gets triggered, fresh buying may be considered once the stock moves above Rs 90.

I am holding Jaiprakash Industries (bought at 160) and Morepen Laboratories (bought at 30). Shall I hold them or book a loss? — B. Govinda Raju

Jaiprakash Industries (Rs 67.5): The outlook for the stock is positive. A move past Rs.80 appears to be on the cards in the near term. Remain invested, as the overall technical outlook is positive. A drop below Rs.60 would warrant dilution of holdings.

Morepen Laboratories (Rs 14.3): After a sharp slide, the stock has staged a sharp recovery in the recent days. The downside risk from current levels is limited. Taking into account the entry price and the overall technical picture, it would be better to remain invested.

What is the outlook for Nocil? — Jagdish Chander

Nocil (Rs 12.3): The outlook for the stock is positive. The stock could move towards Rs 20 in the next few months. Only a drop below Rs 9.5 would negate the positive outlook. Remain invested with a stop loss at Rs 9.5. A move past Rs 15 could be used to take fresh long positions.

I am holding shares of Andhra Paper at the price of Rs 100. Shall I hold? — R. Mohan

Andhra Paper (Rs 110.1): The share price of the company is likely to move up further from current levels. The immediate target for the stock is placed at the Rs 150-160 range. Remain invested with a stop loss at Rs 97. Alternatively, risk-averse investors could take profits at current levels for a portion of the portfolio and retain the balance. A move past Rs 150 could be used to take profits.

Kindly suggest the likely target exit prices for Aban Lloyd and Container Corporation. — S. Viswanath

Aban Lloyd (Rs 283.4): The stock appears to have significant upside potential from current levels. A move past the recent high of Rs 343 appears likely. It would be safer to remain invested if the position is "in the money". If the cost of purchase is higher than the current market price, it would be safer to have a stop loss at Rs 272.

Container Corporation (Rs 412.9): The share price of the company could seek higher levels. There is no need to liquidate holdings at current levels. The stock appears to have the potential to seek the Rs 500 level within the next six months. Remain invested with a stop loss at Rs 390.

Please comment on J&K bank and Andhra Bank. — Antony

J&K Bank (Rs 216.9): The long-term outlook for the stock is positive. The stock is likely to move past the immediate high of Rs 252. However, there is a downside risk of a drop to the Rs 180-190 level if the scrip slides below Rs 205. Remain invested with a stop loss at Rs 205. Fresh buying may be considered on a move past Rs 236.

Andhra Bank (Rs 44): The stock could seek the Rs 55-60 level in the near term. On the downside, Rs 37 level would offer support. Remain invested with a stop loss at Rs 37. A move above Rs 47 could be used to take fresh exposures.

(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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