The Hindu Business Line : Query Corner

I am holding shares of SSI. Please advise me about the medium- to long-term levels and also let me know if I can accumulate more at current levels. Rajesh Sanghvi

SSI (Rs 193.9): The long-term outlook for this stock will stay positive as long as it stays above Rs 150. If you are a long-term investor, hold the stock with a stop at Rs 150. The long-term targets for this stock are Rs 248 and then Rs 313. The medium-term trend in this stock, too, is positive. The price can break out to Rs 202 and then Rs 237 in the medium term. Fresh buying can be done for the medium term with a stop at Rs 178.

What is prospect of HFCL for short-term (two months)? R.B. Sabbo

Himachal Futuristic Communications (Rs 25.1): In our last review of the scrip in August, we had mentioned that there is a possibility of a breakout to Rs 31, where exit was recommended. This stock is expected to continue to face resistance from the Rs 31 level over the next two months. Intermittent resistance would be available at Rs 27. A weekly close above Rs 31 is required to take the price to Rs 34.

I am holding MCF bought at Rs 18 and Karnataka Bank. Please tell me should I hold or exit. Giri

MCF (Rs 18.3): The scrip has registered a strong upward move last week. Short-term resistance is at Rs 19.4. Rally past this level can take the price to Rs 22 or Rs 24. Hold with a trailing stop of 5 per cent. Long-term support for this stock exists at Rs 9. The price is not expected to fall significantly below this level.

Karnataka Bank (Rs 150.3): The counter has reversed sharply from the low of Rs 103 recorded in mid-December. The medium-term target for this stock is Rs 184. However, it is best to keep a tight stop at Rs 138. A fall below this level can drag the price lower to Rs 126.

I am holding the shares of Vishal Exports. What is the future outlook for this stock? Should I remain invested or should I exit? Sandip, Sanjeev Chodhary

Vishal Exports (Rs 2.9): This stock is in a vicious down trend. A rally has started last week. The stock can head towards Rs 4.5 or Rs 5.6 in the short term. Use this rally to exit from this stock.

I would also like to know the future prospects of Tata Motors, as I wish to re-purchase the same, which was recently sold at Rs 840 after buying at Rs 960 some six-seven months ago. R. Haridas

Tata Motors (Rs 937.4): It is not a good idea to hold a grudge against a stock in which a loss was booked. The stock is currently near your original cost price. But the third leg of the move that began from the July lows is nearing completion. This move can terminate around the previous high of Rs 998. It is not recommended to buy into the stock at this juncture. Wait for a fall to Rs 850 levels before investing in this stock again.

I want to know short-term outlook of Sonata Software purchased at Rs 68 and Kajaria Ceramics purchased at Rs 48.40. Syed

Sonata Software (Rs 70.3): This stock has recorded a sharp jump of 125 per cent from the low of Rs 33 recorded in mid-November. Short-term support exists at Rs 58. So hold the stock with a stop at Rs 55. A breakout above Rs 75 can take the stock to Rs 97.

Kajaria Ceramics (Rs 57): The counter is showing a positive long-term consolidation formation on the chart. The price is expected to move in a range between Rs 50 and Rs 66 over the next one year. For the short term, price can rally to the previous high of Rs 64. Hold with a stop loss at Rs 53.

I am holding India Glycols bought at Rs 173. Kindly advise me regarding the future of this company. Prasad

India Glycols (Rs 133.3): The recovery in this stock since the low recorded in June has not been able to take it beyond Rs 171. The stock is expected to move in a broad range between Rs 100 and Rs 170 over the next one year. A breakout past Rs 170 is required to take the stock to the next resistance level that exists at Rs 213. Exit the stock around your cost price. Till then, hold with a stop at Rs 115.

I have a good quantity of Hindustan Motors bought at Rs 35.75 and GTL Infra bought at Rs 39.85. I am a short-term investor. Could you please let me know the short-term prospects for the above companies? Ramachandran Gopalan

Hindustan Motors (Rs 36.4): This stock is in a medium-term downtrend since it hit a high of Rs 44 in late August last year. However, the scrip has reversed from a low of Rs 32, which is an important medium-term support. This stock can now rally to Rs 38 and then Rs 42 in the short term. But a firm breakout beyond Rs 42 is required to take the stock to Rs 44 or Rs 47. Hold your stocks with a tight stop at Rs 32. A fall below Rs 32 will pave the way for the stock sliding all the way down to Rs 25 again.

GTL Infra does not have sufficient history to enable us to do technical analysis. Hold the stock with a stop at Rs 34 for the short term.

Readers can send in their queries, on not more than two companies, to

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

Lokeshwarri S. K.

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