The Hindu Business Line : Query corner

Zuari Industries (Rs 84): The long-term trend is bullish and it would be reasonable to expect a 25-per cent return from prevailing levels. The positive view would be negated if the share price declines below the stop-loss level of Rs 70. Remain invested with a stop-loss at Rs 70. Investors who prefer a relatively closer stop-loss may place it at Rs 78. Fresh exposures may also be considered on a close above Rs 87, with a stop-loss at Rs 82.

Shall I hold or sell Rajshree Sugar bought a decade ago at Rs 16? — K.G. Thomas

Rajshree Sugar (Rs 45.5): After a steady upward move, the stock is in a corrective phase. A close above Rs 47 would indicate that the corrective phase is over and would help the stock move to the Rs 54-55 band. On the contrary, a drop below Rs 43 would suggest that the share price has resumed the earlier downtrend. This could push the stock to lower levels of Rs 37-38. Hold with a stop-loss at Rs 42.5.

What is the outlook for NDTV purchased at Rs 176? — C.K. Ravikumar

NDTV (Rs 179.4): The near-term outlook is positive. A move to Rs 185 would confirm the positive outlook. Remain invested with a stop-loss at Rs 165. The stock appears to be headed towards the Rs 200-205 range. A close below Rs 164 would negate the positive outlook.

Is it advisable to hold Gujarat Themis bought at Rs 33 and Torrent Gujarat at Rs 22? — C. Vidya

Gujarat Themis (Rs 23.5): The short-term trend appears bullish and would remain so, as long as the stock holds above the stop-loss level at Rs 20.5. The immediate target for the stock is placed at the Rs 27-28 range. At least a portion of the holding may be sold on a drop below Rs 20.5. Stop-loss may be tightened at once the stock moves closer to the target zone.

Torrent Gujarat (Rs 14.5): The share price is ruling close to the crucial support level at Rs 12.5. A breach of this level would impart weakness and could push the stock to the Rs 7-8 range. Remain invested with a stop-loss at Rs 12.5; as long as this stop-loss holds, the possibility of a rally to the Rs 21-22 range would be valid.

Kindly let me know what the price charts forecast for Cipla and Wipro. — Venkat

Cipla (Rs 272): The stock is ruling at a crucial resistance zone at the Rs 270-273 range. A close above Rs 275 would be a positive sign while a slide below Rs 253 would impart weakness. A drop below Rs 253 could push the stock to the Rs 235-240 band. Hold with a stop-loss at Rs 252. A close above Rs 275 could help the stock seek the Rs 290-25 range.

Wipro (Rs 637): A move above Rs 645 would be a sign of strength. This could pave the way for a rally to the Rs 695-700 range. The price pattern suggests that such a breakout could happen and there is a fair chance of a rally to the target zone. Hold with a stop-loss at Rs 610. Fresh exposures may be considered on a break above Rs 645, with a stop-loss at Rs 620.

What is the outlook for Garden Silk? — J.S.R. Anjanayalu

Garden Silk (Rs 49): The share price is ruling close to the immediate support level at Rs 45.

A breach of this level could push the stock to the Rs 34-36 range. Remain invested with a stop-loss at Rs 44. The trend would turn bullish if the stock closes above Rs 55. Use a trailing stop-loss in the event of an upward move in prices.

What is the outlook for RCF bought at Rs 40? — Uday Kulkarni

RCF (Rs 34.9): The stock appears to be headed towards the immediate resistance level at the Rs 36-37 band. Remain invested with a stop-loss at Rs 31. Fresh exposures may be avoided. Use a trailing stop-loss to protect unrealised gains. Evidence of resistance at the Rs 37 level would warrant dilution of holdings.

I would like to have your views on GNFC purchased at 68. — Avninder

GNFC (Rs 73.1): The price movement has been devoid of any trend in the recent weeks. There are no signs of the stock seeking higher levels. A close above Rs 75 would have positive implications; a drop below Rs 65 would impart bearishness. Hold with a stop-loss at Rs 68. Fresh exposures may be avoided. If the stop-loss gets triggered, fresh buying may be considered on a subsequent close above Rs 75.

What is your take on Ballarpur Industries bought at Rs 95? — Vimal Bhatia

Ballarpur Industries (Rs 104.3): The outlook appears bullish and would remain so as long as the stock trades above the stop-loss level of Rs 99. Hold with a stop-loss at Rs 97; add exposures with the same stop-loss level when the stock closes above Rs 110.

What is the outlook for Ispat Industries bought at Rs 23.6? Please advise whether to hold, sell or add. — Chandrakumar, Venu

Ispat Industries (Rs 22.2): Though there is a possibility of a short-term bounce, signs of a reversal of the recent downward move are not apparent as yet. A move to the Rs 23.5-24 range appears likely. A move past Rs 25 would be a positive sign and the stock is likely to seek higher levels of Rs 27-28. Hold with a stop-loss at Rs 20.

I hold shares of Aksh Opti Fibre bought at Rs 58. Please tell me whether to hold or exit. — S. Chandrasekhar Sarma

Aksh Opti (Rs 52.8): The near-term trend is bullish and a move to the Rs 58-60 range appears likely. The positive outlook would be invalidated if the stock closes below Rs 46. Hold with a stop-loss at Rs 46 and use a trailing stop-loss if the stock keeps moving up.

I bought Thirumalai Chemicals at Rs 127 and Ind-Swift at Rs 59 (post-stock split). Please furnish the short- and long- term outlook for these stocks. — K.V.N. Reddy

Thirumalai Chemicals (Rs 128.5): After a corrective phase, the stock has staged a recovery in the past few weeks. The recovery does not appear complete. The share price is likely to move to the Rs 138-141 range. Shareholders may remain invested with a stop-loss at Rs 121.

Ind-Swift (Rs 59): Hold with a stop-loss at Rs 51, as a breach of this level could impart weakness. There is a possibility of a rally to the Rs 68-69 range, provided the share price holds above Rs 51.

Fresh exposures with close stop-loss may be considered on a move above Rs 64.

I had purchased Ankur Drugs at Rs 66 six months ago. What is the outlook for the stock? — Deepak Kakkad

Ankur Drugs (Rs 63.5): Considering your entry price and the prevailing market price, it appears that the sum invested in the stock has not yielded any returns in the holding period of six months.

There is no point hanging on to the stock, as there are no signs of an upward move. Sell a portion of the holdings at prevailing levels and hold the rest with a stop-loss at Rs 59.

Fresh exposures may be considered with a tight stop-loss once the stock closes above Rs 68.

Kindly let me have your views on India Cement bought at Rs 72 and Centurion Bank at Rs 24. — H.C.Puri

India Cement (Rs 69.2): The stock has been coiling into a narrow trading zone in the recent weeks. There has been a perceptible contraction in volatility. Such a situation normally turns out to be a precursor to a strong trending move. Taking into account the recent price pattern, a swift move on the upside may be expected. This view would be validated if the share price closes above Rs 75. Remain invested with a stop-loss at Rs 60.

Centurion Bank (Rs 14): Though the stock may struggle to get back to your entry price, a recovery to Rs 16-17 levels appears likely. A close below Rs 12.5 would result in the continuation of the earlier bearish trend. Remain invested with a stop-loss at Rs 12.5; a trailing stop-loss may be used in the event of an upward move in prices.

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Queries can also be sent by post to: Tech Trail, 859/860 Kasturi Buildings, Anna Salai, Chennai 600002

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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