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B. Krishnakumar

I had bought Pfizer recently at Rs 454. Can you advise me whether to hold or sell at present levels? Would you recommend adding the stock at every decline? I do not mind holding on to this scrip for 2 to 3 years if the prospects in your opinion are really bright.

I also bought Syndicate Bank at Rs 10 through the public offer about four years ago. At the current rate of Rs 38, is partial selling advisable or should I continue holding on for further appreciation? — Shamoli Samant

Pfizer (Rs 552): The outlook for the stock appears positive. We are revising our earlier bearish view as the stock has moved past the then mentioned (edition dated November 30) positive trigger price of Rs 480. A move to the Rs 620-630 range is not ruled out. Remain invested with a stop loss at Rs 520.

Adding the stock on declines is not recommended as there are other pharma stocks that appear more bullish on the charts compared with Pfizer. Limited quantity of shares of companies such as Elder Pharma, Glenmark Pharma or Aurobindo Pharma may be included in the portfolio. All long positions would, however, warrant a stop loss.

Syndicate Bank (Rs 41.8): As the stock has upside potential from present levels, it would be advisable to remain invested.

Taking into account the technical outlook as well as other factors such as your acquisition price and the resultant attractive dividend yield, there is no reason to sell this stock now. Remain invested as a move to Rs 48-50 appears likely in the near term.

Can I hold on to Reliance Industries bought at Rs 323. — Gopalkrishna

Reliance Industries (Rs 585.7): The near-term outlook for the stock is covered elsewhere in this page.

The stock is in the midst of a major bull run. Taking into account your entry price and positive outlook, there is no reason to sell at this point in time. Remain invested with a stop loss

I holding Canara Bank at Rs 135 and IOC at Rs 440. Please suggest at what rate to exit. — Ram Kushwaha

Canara Bank (Rs 141.3): The near-term outlook appears positive. The stock could move to the Rs 160-165 range.

A close above Rs 145 would confirm the positive outlook. A drop below Rs 131 would negate the bullish view. Remain invested with a stop loss at Rs 131. Fresh buying may be deferred for the moment.

Indian Oil (Rs 503.5): The stock has moved to the target zone of Rs 480-500 that was mentioned a couple of weeks ago. The outlook remains positive and the stock appears to be in the midst of a strong bullish phase.

The recent rally has pushed the stock to an overbought region and a short-term decline or a sideways consolidation may materialise shortly. The long-term uptrend towards the Rs 600 mark appears to be on the cards after the completion of the anticipated correction. Remain invested with a stop loss at Rs 455.

I bought Bongaigaon Refineries at Rs 81.30 and earlier at the price of Rs 56. I also hold Lumax Industries at the price of Rs 89. Should I sell now or wait for a while? — Venkat Narasimhan & K.N. Krishnamurthy.

Bongaigaon Refineries (Rs 95.1): After a prolonged phase of consolidation, the stock has broken out of the trading range it was confined to.

There appears to be significant upside potential from current levels. A move to the immediate target zone of Rs 115-120 appears likely. Remain invested with a stop loss at Rs 80. Price dips could be used to add the stock to the portfolio. All long positions would warrant a stop loss at Rs 80.

Lumax Industries (Rs 81.5): The stock is still in a corrective phase for the earlier sharp upmove.

The long-term uptrend would reassert itself on the completion of the ongoing correction. A move to the Rs 105-110 range is not ruled out. The only caveat is that a drop below Rs 75 would result in the completion of a bearish "Head and Shoulder" pattern that could result in a drop to the Rs 64-66 range.

Remain invested with a stop loss at Rs 75. If the stop loss gets triggered, fresh buying may be considered after the price closes above Rs 90.

Should I hold Tata Teleservices bought at Rs 21? Is it the right time to buy TVS Motor? — Makam Rajesh

Tata Teleservices (Rs 23.7): The stock has potential to seek the Rs 28-30 range in the near term. Given the positive outlook, there is no reason to sell this stock in a hurry. Remain invested with a stop loss at Rs 19. Conservative investors and those who are uncomfortable with this level may have the stop loss pegged at a higher level of Rs 21.

TVS Motor (Rs 116.5): Though there appears to be scope for an upside move, it would be safer to wait and take exposures on price declines to the Rs 100-105 range.

The stock could remain in a corrective phase for a short time frame and resume the uptrend thereafter. Long positions may either be considered on price weakness or on a close above Rs 126. All long positions would warrant a stop loss at Rs 95.

I bought Nagarjuna Fertilisers at Rs 10.2 and Lloyd Steel at Rs 7.85. Is it worth holding these shares or should they be sold now? — K.N. Krishnamurthy.

Nagarjuna Fertiliser (Rs 10.9): The stock could move to the immediate target zone of Rs 12.5-13 in the near term. Taking into account the long-term positive outlook, it would be better to remain invested. All long positions would warrant a stop loss at Rs 8.5. A trailing stop loss may be employed for at least a portion of the portfolio after the share price moves past Rs 13.

Lloyd Steel (Rs 7.3): The share price has been confined to a narrow trading zone in the recent weeks. A short-term upmove to Rs 9.5-10 is likely to materialise on the completion of the ongoing sideways corrective phase.

A close below Rs 6 would negate the positive outlook and could result in a drop to further lows. Remain invested with a stop loss at Rs 6. A close above Rs 8.5 would impart positive trend and could pave the way for a rally to the target price of Rs 10.

I have Petron Engineers bought at Rs 79.8. Should I sell or average? What is the outlook for Saint-Gobain Sekurit? — S. Seetharaman

Petron Engineering (Rs 66.5): The stock has dropped sharply after a swift rise. There appears to be limited downside from the current level. It is, however, better to wait for conformation that the downtrend is complete before investing more funds in the stock.

A close above Rs 73 would be an early indicator of the completion of the correction. Fresh long positions may be considered on a move past Rs 73 with a convenient stop loss in place.

There is no point selling the stake at current levels. Conservative investors may have the stop loss at Rs 59. If the stop loss of Rs 59 gets triggered, buying may be considered afresh on a close above Rs 69.

Saint-Gobain (Rs 26.1): It is difficult to arrive at the outlook for this stock based on the recent price action.

Going by the recent price pattern, there appears to be no signs of a major bullish momentum in the stock. It is better to stay clear of the stock for the moment.

Risk-seeking investors may pick-up limited exposures in the stock once it closes above the resistance level of Rs 30.

Please advise about the prospects of Aurobindo Pharma and UTI Bank. — Ashok Jain

Aurobindo Pharma (Rs 464.6): The stock is likely to move past the Rs 500 mark in the near term. The stock is in the midst of a major bullish phase and could yield returns in excess of 30 per cent for patient long-term investors. At the moment, only a drop below Rs 330 would negate the positive view. Remain invested with a stop loss at Rs 390. Extremely risk-seeking traders may take long positions at current level with a stop loss at Rs 425.

UTI Bank (Rs 150.3): The stock has staged a sharp upmove recently and it appears to have upside potential from present levels. A move to the Rs 175-180 range appears likely. Only a close below Rs 135 would negate the positive outlook. Remain invested with a stop loss at Rs 135. Fresh buying may be deferred for the time being.

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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