• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

B. Krishnakumar

Shall I hold or exit from Harrisons Malayalam bought at Rs 83? — Sreeji

Harrisons Malayalam (Rs 96.1): After a sharp run-up in the recent weeks, the share price appears to be in a corrective phase now. The long-term trend is bullish and the stock would resume the uptrend after the completion of the ongoing corrective move. The immediate support is at the Rs 91-94 range. A close above Rs 100 would indicate the resumption of the uptrend and the stock could subsequently move to the Rs 125-130 range. Hold with a stop-loss at Rs 87. Fresh exposures may be considered on the evidence of support at the Rs 91-94 range.

I am holding Welspun India bought at Rs 125 and Prism Cement at Rs 25. What are the resistance levels for these and should I buy when these stocks fall? — Manu

Welspun India (Rs 113): The recent downward trend does not appear complete. The stock could drop to the Rs 95-100 range. It would be advisable to sell at least a portion of the holding at prevailing rates. Fresh exposures may be considered either on evidence of support at around the Rs 95-100 range or on a move past Rs 122.

Prism Cement (Rs 19.6): The long-term trend remains bullish. The stock is likely to get into an uptrend once the corrective phase that it is currently in, is over. Shareholders may remain invested with a stop-loss at Rs 17.

Kindly let me have your views on Teledata Informatics and Shipping Corporation? — V.R.Chandrahasa, Bhaskar, Prafulla Kumar Bisogi, Amrit Patel, Loga Raju, Nitin Acharya

Teledata Info. (Rs 37.1): The stock appears to be in the fag end of the downtrend. A reversal of the present bearish trend would materialise shortly. The immediate support is at the Rs 31-32 range. The stock could seek support at this range and consolidate for a while before the commencement of the next upward move. Hold with a stop-loss at Rs 36. If the stop-loss gets triggered, fresh exposures may be considered on the evidence of support at the Rs 31-32 range. Else, fresh exposures may also be contemplated on a close above Rs 43, with a price target of Rs 52-55.

Shipping Corporation (Rs 150): The share price is ruling close to a key support level at the Rs 138-139 band. A close below Rs 137 would impart weakness and could push the stock down to the Rs 125-128 range. Hold with a stop-loss at Rs 137. Fresh exposures may be considered on a close above Rs 161, with a close stop-loss in place.

I own shares in L.G.Balakrishna Bros. Bongaigon Refineries at Rs 22.5 and Rs 72 respectively. Kindly advise whether to sell or hold these shares. — Shaik Abdul Gani

L.G.Balakrishna (Rs 37.8): Taking into account your entry level and the positive long-term outlook, there is no reason to sell the stock now. Remain invested with a stop-loss at Rs 33. The stock appears to be headed towards the target level of the Rs 48-50 range.

Bongaigon Refineries (Rs 96.1): Considering that you have entered at fairly lower levels, it would be advisable to sell at least a portion of the holdings now. The stop-loss may be placed at Rs 90 for the balance. The stock appears to be headed towards the lower levels of the Rs 82-85 range.

Kindly advise about my holdings in Bata at Rs 89 and Centurion Bank at Rs 13.7. — A.Shankar Rao, Sandeep

Bata (Rs 85.1): The stock has been devoid of any trend in the past few weeks. A breakout from this tight trading range would result in a sharp move in the direction of the breakout. The recent price pattern suggests that the breakout would be on the downside. A close below Rs 76 would indicate that the stock is headed towards lower levels of the Rs 58-60 range. Hold with a stop-loss at Rs 76 and reduce exposures on price rally. Investors who feel that the stop-loss is too wide may sell a portion of the holdings now and have a stop-loss at Rs 76 for the balance. A positive trend would emerge only if the stock closes above Rs 105.

Centurion Bank (Rs 14.3): The immediate support zone for the stock lies at the Rs 13-13.5 band. A close below Rs 13 would push the stock to lower levels of Rs 10-11. Taking into account your entry price and the reliability of the support band, it would be advisable to remain invested with a stop-loss at Rs 13. A close above Rs 16 would reinstate short-term bullish trend that could propel the stock to the next target zone of Rs 18-18.5.

Please recommend whether to hold or sell Punjab National Bank bought at Rs 402. — Prafulla Kumar Basogi

Punjab National (Rs 382.7): The near-term trend is bearish and a drop below Rs 371 would confirm the weak outlook. Remain invested with a stop-loss at Rs 371 and a trailing stop-loss may be used in the event of an upward move in price. Only a close above Rs 401 would have positive implications.

Shall I add or sell the shares of S.Kumars Nationwide bought recently. — D.Venugopal

S.Kumars Nation (Rs 24.4): The outlook is bullish and the stock could move to Rs 29-30 levels in the near term. Fresh exposures with a close stop-loss may be considered on a close above Rs 26. Stop-loss for existing holdings may be placed at Rs 22. A close below Rs 22 would negate the positive outlook and would warrant dilution of holdings in the company.

What is your view on Classic Diamonds? — Sachin Mohapotra

Classic Diamonds (Rs 136): The stock faces resistance at the Rs 142-146 range and enjoys support at the Rs 123-126 band. Exposures may be trimmed if the stock gets closer to the resistance zone and fails to close above it. Evidence of support at the Rs 123-126 range may be used to buy the stock with a stop-loss at Rs 112. A close below Rs 122 would warrant reduction in holdings, as it would impart weakness.

Shall I hold or sell Shanti gears purchased at Rs 52.3 and Gruh Finance at Rs 73? — M. Phaneendra, P.S.Rao

Shanti Gears (Rs 50.5): The near-term outlook is bearish and the stock could drop to the Rs 42-44 range. Investors, especially the ones who are holding profitable position, may consider selling a portion of their holdings now. Fresh exposures may be considered on a close above Rs 55. Investors willing to take risk may hold with a stop-loss at Rs 48. The stock could bounce back to Rs 58-60 range on the completion of the ongoing corrective phase.

Gruh Finance (Rs 73.5): Remain invested with a stop-loss at Rs 68 as the stock appears to have the potential to move to the Rs 85-86 band. Fresh exposures may be avoided while a close below Rs 67 would warrant selling of at least a portion of the holdings.

What is the outlook for Spice Jet bought at Rs 65? — Clarence Joel

Spice Jet (Rs 67.3): The stock (formerly known as Modi Luft) has seen a sudden flare-up in the recent weeks. The share price is, however, in a short-term corrective phase. It can drop to the Rs 62-63 band and resume the earlier upward subsequently. Remain invested with a stop-loss at Rs 61 as the stock is likely to bounce back to the Rs 78-80 range on the completion of the expected short-term downtrend.

Based on your recommendation, I bought SRF at Rs 153. It is ruling weak since then despite the good financial performance reported recently. Please inform whether the stock will rise or should I sell it now. — A. Veerabahu

SRF (Rs 136.3): The outlook expressed a couple of weeks ago is still valid. The recent price action has not negated the possibility of a rally to the Rs 165-170 range. This view would be invalidated only on a close below the stop-loss level of Rs 124. Remain invested with a stop-loss at Rs 124.

Is this the right time to buy Balrampur Chini? — Amalendu Barik

Balrampur Chini (Rs 56.5): As the near-term trend does not appear bullish, there is no reason to invest in this stock now. Fresh exposures may be considered once the stock stabilises and gets into an upward trending mode. A close above Rs 67 would confirm that the stock has resumed the uptrend and exposures may be considered subsequently.

The share price of MRPL is not moving up at all. Please advise whether to hold or sell at a loss at prevailing levels. — Satish Naik

MRPL (Rs 47.3): The stock could seek higher levels in the near term. A close above Rs 50 would confirm the positive outlook for the stock. Remain invested with a stop-loss at Rs 39. Fresh exposures may also be contemplated on a move above Rs 50, with a close stop-loss in place.

Based on your recommendation, I purchased Jindal Saw at Rs 222.3 and the stock has run up quite sharply since then. Also, you had predicted that Ballarpur Industruies would reach Rs 135. I bought it Rs 93. Should I take profits or hold these stocks for better returns. — Navneet Bahl

Jindal Saw (Rs 337.9): Taking into account your entry price, we would recommend partial profit booking at prevailing levels. The stop-loss for the remaining position may be placed at Rs 320. As the long-term trend is still bullish, exposures be considered on price weakness, with a stop-loss at Rs 319.

Ballarpur Industries (Rs 122): The stock appears on course to move to the target price of Rs 135. Hold with a stop-loss at Rs 100. A trailing stop-loss may be used in the event of a run up in price. The stock appears to be in a long-term uptrend. Investors willing to wait for about six months are likely to get opportunities to exit at the Rs 155-160 range.

(Note: 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)

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, Chennai 600002

We would endeavour to answer as many queries as possible. However, constraints of space will limit the responses featured under this column.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ambuja Cement Eastern: Reject

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line