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B. Krishnakumar

What is the outlook for Aztec Software bought at Rs 84? — K. Bhanuprasad

Aztec Software (Rs 95.1): The outlook for the stock was covered in the "Focus of the week" column in the edition dated February 13. The stock ruled weak as anticipated, but managed to hold above the stop-loss level of Rs 71. The anticipated weakness appears complete and the stock could move towards the projected target zone of Rs 125-130 range. Investors may hold with a stop-loss at Rs 71. Fresh exposures may also be considered on intermittent price weakness, with a stop-loss at Rs 84.

I need advice on Neyveli Lignite purchased at Rs 72 and Sonata Software at Rs 23? — P. Narayana

Neyveli Lignite (Rs 66.7): The near-term outlook is bullish and a close above Rs 68 would confirm this view. On the contrary, a close below Rs 61 would have bearish implications and would push the stock to the Rs 57-58 range. Hold with a stop-loss at Rs 61. Investors who have entered at lower levels may place the stop-loss at Rs 50. The long-term trend is bullish and a move to the Rs 82-85 range appears likely.

Sonata Software (Rs 24.1): The stock reversed direction at Rs 25 on Thursday, for a third time in recent months. This level is proving to be a strong resistance zone. A strong trend would not be in place unless the stock closes above this level. Long-term investors who have entered at lower levels may take partial profits and have a stop-loss at Rs 18.5 for the rest. Shareholders who prefer higher risks may hold with a stop-loss at Rs 18.5. Fresh exposures may be considered on price weakness, with a stop-loss at Rs 18.5. A close above Rs 26 may be used to enhance exposures.

Please provide your view on CCL Products purchased at Rs 200 and Tamil Nadu Newsprint at Rs 62. — K.Viswanathan

CCL Products (Rs 200.5): There appears to be marginal downside risk from prevailing levels. The long-term trend is bullish and a move to the Rs 255-260 range appears likely.

The stock seems to have completed the recent downward move at Rs 176, a couple of days ago. A breach of this level would push the stock to the Rs 178-185 range. The stock is, however, likely to resume the upward move after a drop to this range. Hold with a stop-loss at Rs 175 for a portion of the holding and at Rs 160 for the rest. Investors who prefer a tighter stop-loss may settle for Rs 175.

Tamil Nadu Newsprint (Rs 59): The near-term outlook is positive and a move to the Rs 66-67 range appears likely. Exposures may be reduced on an evidence of resistance at this range. Alternatively, stop-loss levels may also be tightened if the share price moves to the target zone. Shareholders may remain invested with a stop-loss at Rs 53.

I am holding shares of Karnataka Bank, purchased at Rs 62. What is the long-term outlook for the stock? — N. Babu

Karnataka Bank (Rs 71): Though there is a case for the recent correction to have been completed at Rs 66.8 on Wednesday, it would be safer to wait for confirmation. Investors may hold with a stop-loss at Rs 65. A close above Rs 80 would be an early indication that the stock is on a new upward move. Fresh exposures may be considered on a close above Rs 80, with a stop-loss at Rs 65.

I bought 500 shares of Gujarat NRE Coke at Rs 164. Please advise whether to hold or sell. — Giri

Gujarat NRE (Rs 120): The stock has been on a downward trend in the recent weeks. It staged a reversal on Friday. Hold with a stop-loss at Rs 95. The long-term outlook is bullish and the stock could seek higher levels of Rs 150-155. Fresh exposures may be considered on a move above Rs 135, with a stop-loss at Rs 113.

What is the outlook for Strides Arcolab bought at Rs 200? — L.B.S. Ibraheem

Strides Arcolab (Rs 209): The stock enjoys a strong support at the Rs 185-190 zone. A breach of this zone would have negative implications. The near-term trend appears bullish and would remain so, as long as the stock holds above Rs 184. Remain invested with a stop-loss at Rs 184. The stock could move to the Rs 235-240 range in the near term.

What is the outlook for Arvind Mills in the medium term? — Sudhakaran

Arvind Mills (Rs 118.7): The stock faces resistance at the Rs 120-121 range. A close above Rs 121 would impart positive momentum. The stock is likely to move to the Rs 135-140 range on the break past the resistance zone. A drop below Rs 110 would result in a short-term weakness and the share price may drop to the Rs 99-100 range subsequently. As the long-term trend is bullish, buying may be considered on the evidence of support at Rs 100.

What is the outlook for Alok Industries? — Varghese Kachappilly

Alok Industries (Rs 64.9): The recent downward trend appears complete. A short-term bounce could be in the offing. A move to the Rs 78-80 range appears likely. Hold with a stop-loss at Rs 57. Fresh exposures may also be considered on price weakness with a stop-loss at Rs 57. A trailing stop-loss may be employed in the event of a steady upward move.

I have shares of Suryavanshi Spinning purchased at Rs 85 and Andhra Sugar at Rs 127. Kindly advise on the outlook for these companies. — Parvez Keki Daruwala

Suryavanshi Spinning (Rs 62.5): The stock could recover to the Rs 72-75 range. There is, however, no sign of the completion of the downward trend that commenced in March. Hold on with a stop-loss with Rs 54. Fresh exposures may be avoided. A close above Rs 76 would indicate that the earlier downward trend is complete and that the stock is headed towards higher levels of the Rs 91-92 range.

Andhra Sugar (Rs 119.4): After a steady drop in the earlier weeks, the stock staged a strong recovery in the past few days. This has resulted in the completion of a "bullish reversal bar" in the weekly chart. There may be opportunities for you to exit at levels higher than the entry price. Hold with a stop-loss at Rs 105. There is a strong resistance zone at the Rs 128-130 range. A close above this range is critical for the resumption of the long-term bullish trend.

I bought D-Link at Rs 134.6. What are the long-term prospects and please advise whether to hold/sell. — Bhuvana Raghunathan, V.Murali, Ravinder

D-Link (Rs 129.5): Though the recent price pattern does not throw up any significant clue about the long-term outlook, the stock could move to the Rs 138-140 range in the near term. Remain invested with a stop-loss at Rs 116.

Fresh exposures may be deferred. Use a trailing stop-loss in the event of a steady upward trend.

I bought Lakshmi Vilas Bank at Rs 200 and Sundram Fasteners at Rs 120. What are the

prospects for these stocks? — Jayalakshmi

Lakshmi Vilas Bank (Rs 165.9): The price movement in the last couple of days indicates that the stock has formed a short-term bottom at Rs 155. A move to the Rs 180-185 range appears likely. Hold with a stop-loss at Rs 150. A close below Rs 150 would warrant dilution of exposures.

Shareholders may sell at least a portion of their holding on evidence of resistance around the Rs 180-185 range. Fresh buying may be considered on a close above Rs 195.

Sundram Fasteners (Rs 110.6): The long-term outlook is bullish. There is, however, no sign of the completion of the short-term downward trend. The downside risk extends up to the Rs 78-80 range. Long-term investors may pick-up a stake in this company on price weakness, with a stop-loss at Rs 78. Shareholders may remain invested with a stop-loss at Rs 103. The stock could move to the Rs 125-130 range on the completion of the corrective phase.

A move above Rs 116 would confirm that the stock has commenced the next phase of an upward move.

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)

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