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Is there upside potential in Prism Cement and HEG? — S.S. Sidhu

Prism Cement (Rs 21.6): The stock is likely to seek lower levels in the near term. The long-term outlook, however, is positive. After a drop to the Rs 18-19 range, the share price is expected to resume the next leg of the rally. A move to the Rs 32-35 range appears likely. The positive view would hold good as long as the price holds above the negative trigger level of Rs 17. Hold with a stop-loss at Rs 17; a decline below Rs 17 would blunt the positive outlook and would warrant a closing of long positions. Long positions may be considered either on evidence of support at the Rs 18-19 range or on a close above Rs 23.

HEG (Rs 97.9): Hold with a stop-loss at Rs 93. Fresh buying may be avoided as there is no evidence of a strong trend in force. A move above Rs 103 would impart strength and the stock could seek higher levels subsequently. A bearish trend would prevail if the stock declines below Rs 90.

Is it advisable to buy Kotak Mahindra Bank and Nicholas Piramal at prevailing levels? — Eswaran Raju, Nand Kishore

Kotak Mahindra (Rs 290): The stock appears to be headed towards the Rs 330-340 range in the near term. Investors willing to wait for a longer time frame may expect much higher returns. Stop-loss for long positions may be placed at Rs 273. Fresh long positions may be considered on a move above Rs 295, with a stop-loss at Rs 280.

Nicholas Piramal (Rs 320): After a sharp run up in value in the recent weeks, the share price could get into a corrective or consolidation phase shortly. As the long-term trend is bullish, price weakness may be used to take fresh exposures. Evidence of support around the Rs 295-300 range may be used to take long positions. Stop-loss for long positions may be placed at Rs 289. The stock could move to the long-term target of the Rs 375-380 range on the completion of expected short-term correction.

What is your view on Punjab National Bank? — R. Narendar Sharma

Punjab National Bank (Rs 405.2): The outlook is positive and a move to the Rs 435-440 range appears likely. Fresh long positions may be considered with a stop-loss at Rs 390. A drop below Rs 380 would negate the positive outlook and would necessitate reduction in holdings.

Shall I hold or sell Sona Koyo Steering (bought at Rs 55) and Ballarpur Industries at Rs 80? — M. Praveen, Vallikasi

Sona Koyo (Rs 56.6): Selling a portion of the holdings is advisable at the moment as the stock could seek lower levels in the near term. The immediate support is placed at the Rs 48-50 range. A drop below this range would result in a test of the next support level at the Rs 42-44 band. A portion of the holdings may be sold at prevailing levels and the balance may be retained with a stop-loss at Rs 52. Fresh buying may be considered on a move past Rs 62.

Ballarpur Industries (Rs 93.5): Though the stock could seek higher levels in the long-term, it is expected to rule weak over the next few days. Long positions may be considered on price dips with a stop-loss at Rs 85. Shareholders may remain invested with a stop-loss at Rs 82.

I hold shares in Karnataka Bank at Rs 207 and Karur Vysya Bank at Rs 371. Please advise whether to hold or sell these stocks. — G. Lakshmi, Sreekesh

Karnataka Bank (Rs 208): The stock could move to the Rs 245-250 range in the near term. A move above Rs 215 would confirm the positive outlook. A drop below Rs 190 would delay the process of the rally towards the target zone of the Rs 245-250 range. Hold with a stop-loss at Rs 189. Fresh buying may be considered on a move past Rs 215.

Karur Vysya Bank (Rs 488.2): After passing through a corrective phase in the past few weeks, the stock appears to have commenced the next leg of the upward move. The immediate target for the stock is placed at the Rs 545-550 range. Hold with a stop-loss at Rs 450. Fresh buying may also be considered on a move above Rs 490, with a stop-loss at Rs 465.

Shall I hold or sell Gujarat NRE Coke purchased at Rs 135.6? — K. Kanagaraj

Gujarat NRE (Rs 188.5): Taking to account your purchase price and the positive outlook, there is no reason to sell. The stock appears to be headed towards the Rs 200 mark in the near term. Long position may also be considered afresh on a move past Rs 192.

Stop-loss for all long positions may be placed at Rs 167. A drop below Rs 167 would warrant partial liquidation of holdings, as the stock would get into a corrective phase. This would delay the onset of the next phase of the upward move.

Please advise about my holdings in Glenmark Pharma bought at Rs 401 and ING Vysya Bank at Rs 687. — Suresh Mittal

Glenmark Pharma (Rs 485): The stock has significant upside potential from prevailing levels. There is no reason to sell the stock now as the share price could move to the Rs 550-560 range.

Though there is a possibility of a short-term correction, price dips maybe used to take exposures. The positive view would be negated on a drop below Rs 440. Hold with a stop-loss at Rs 440 for a portion of the holding. Investors who have entered at fairly lower levels may place the stop-loss at Rs 380. Though it would not be prudent to have such a wide stop-loss, it may be worth the risk in this case as the upside potential is commensurate with the risk involved.

What is the outlook for Mangalam Cement and VSNL? — Tarun K. Gupta

Mangalam Cement (Rs 59.8): The outlook is positive and a move to the Rs 68-70 range appears likely. Hold with a stop-loss at Rs 52. A drop below Rs 52 would warrant dilution of holdings. Fresh exposures may be considered on a move past Rs 62, with a stop-loss at Rs 57.

VSNL (Rs 232.1): Though the long-term outlook appears hazy, we would recommend this stock for a "trading buy". Long positions may be considered on a move above Rs 244, with a stop-loss at Rs 225. Alternatively, buying may be considered if the stock rules weak and finds support at the Rs 208-210 range.

Stop-loss for purchases made at lower levels may be placed at Rs 192. The stock appears to be headed towards the Rs 265-270 range.

What are the prospects for IDBI Bank purchased at Rs 59 and IndusInd Bank at Rs 64? — Pradeep, P. Shirodkar, Rajee

IDBI Bank (Rs 67): The stock has moved out of a major trading range on Friday. The breakout was also accompanied by a huge jump in trading volumes. This is a sign of bullishness and the stock could move to higher levels. Hold with a stop-loss at Rs 59. Partial profit booking may be considered on a move to the Rs 88-90 range.

IndusInd Bank (Rs 60.6): After a prolonged correction, the stock appears to be in the midst of the next leg of the upward move. The share price is likely to move past the Rs 100 mark. Though this target is not likely to be achieved in a jiffy, the stock is likely to make steady progress towards this level with small phases of correction in between. The positive view would be negated if the stock declines below Rs 50. Hold with a stop-loss at Rs 50. Fresh buying may be considered on a move past Rs 63, with a stop-loss at Rs 55.

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.

(The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Opinion and price targets are based on the Elliott Wave Analysis. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop loss level is breached. There is a risk of loss in trading)

B. Krishnakumar

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