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B. Krishnakumar

I would like to know the outlook for Zee Telefilms and Tamilnadu Petroproducts. — S.M.Dani

Zee Telefilms (Rs 103.8): Though the stock appears to have potential to seek higher levels, a drop below Rs 100 would impart bearishness. Considering the possibility of an upward move, existing holders could remain invested. Exposures may be reduced if the stock drops below Rs 95. A move past Rs 123 could be used to take fresh exposures.

Tamilnadu Petroproducts (Rs.19.9): The stock has not participated in the recent stock market rally. It has been confined to a relatively narrow trading range. The overall outlook for stock does not appear positive. However, the stock is trading very close to the critical support of Rs 18. Remain invested with a stop loss at Rs 17.5. Fresh buying may be avoided.

What are the prospects of Hindustan Motors and Asian Paints purchased at Rs 18.15 and Rs 300 respectively? — H.Singh, B.Vibhu, C.Girijan

Hindustan Motors (Rs 16.1): The outlook for the stock appears positive. A move towards the Rs 21-22 range appears likely. Existing holders could remain invested with a stop loss at Rs 14.4. Fresh buying may also be considered with a stop loss at Rs 14.4

Asian Paints (Rs 313.3): The stock appears to have the potential to seek higher levels. Existing holders could remain invested with a stop loss at Rs 280. Fresh buying may be avoided for the time being.

How do Union Bank and Dabur look on the charts? — Poosarla Madhava Rao

Union Bank of India (Rs 44.45): The historical price data is inadequate to arrive at a technical outlook for the stock. The stock appears vulnerable to drop to the Rs 35-38 range. Existing holders could have a stop loss at Rs 42. A close above Rs 51 could be used to take fresh exposures.

Dabur (Rs 60.2): The stock has been on a steady decline over the last couple of weeks. There is, however, limited downside risk from current levels. While fresh exposures may be deferred till bullish momentum gathers pace, existing holders could remain invested with a stop loss at Rs 56.

What are the prospects of Asahi India and Wellwin Industries? — K. Mohan

Asahi India (Rs 90.25): The overall outlook remains bullish. A move towards the Rs 105-110 range appears likely. Existing holders could remain invested with a stop loss at Rs 80. A close below Rs 78 would warrant dilution of holdings.

Wellwin Industries (Rs 12.7): There appears to be little downside risk in the stock from current levels. Existing holders could remain invested with a stop loss at Rs 10. Bullish trend can re-establish itself only if the stock manages to close above Rs 18.

I would like to know the outlook for GE Shipping and City Union Bank. — Reyasudeen.

GE Shipping (Rs 70): Though the stock could seek lower levels in the near term, the overall outlook remains positive. A drop to the Rs 60-63 range appears likely. Existing holders who are "in-the-money" could book profits on a portion of their holdings. For the balance, a stop loss may be placed at Rs 67. Evidence of support at around Rs 60 could be used to take fresh exposures.

City Union Bank (Rs 55): Existing holders could remain invested with a stop loss at Rs 52. A trailing stop loss could be employed if the stock moves up. After a short-term rally, a drop to the Rs 45-46 range appears likely. Investors who are "in-the-money" could take profits on a major portion of the portfolio.

I am holding 1,000 shares of SKF bearings bought at Rs 68 and 1,000 shares of Bank of Punjab bought at Rs 27.50. In the current market trend can I hold or sell them? — V.Kannan

SKF Bearings (Rs 66.45): The long-term outlook remains positive. The stock could seek the Rs 78-80 range. A drop below Rs 62 would, however, pave the way for a slide to the Rs 54-55 band. Existing holders could remain invested with a stop loss at Rs 62.

Bank of Punjab (Rs 25.7): A contracting triangle pattern appears to be taking shape on the charts. A decisive trend would emerge only if the stock breaks out of this pattern. A move past Rs 29 would impart bullish trend while a drop below Rs 23 would have negative implications. Remain invested with a stop loss at Rs 23.

I am holding 200 shares of Essar Steel bought at Rs 17.5. Should I sell it at current price? — Anil Mishra

Essar Steel (Rs 22.6): There is no need to exit the stock in a hurry. The overall outlook for the stock continues to remain positive. Existing holders could remain invested with a stop loss at Rs 19. The stock could re-test the earlier high of Rs 39, once the ongoing correction gets completed.

I am holding 2,000 SB&T International (bought at Rs 33.50). I would like to buy Nava Bharat Ferro Alloys. Kindly give the prospects & its technical levels. — T. Janardhan Reddy

SB&T International (Rs 32.75): The overall outlook does not appear positive. The stock is in a trading range and lacks any sort of momentum on either side. It would be better to reduce exposures in this stock.

Nava Bharat Ferro (Rs 94.8): This stock appears technically stronger in comparison to SB&T International. Fresh equity exposures may be considered with a close stop loss once the stock moves above Rs.104. A part of the holdings in SB&T may be converted into Nava Bharat provided the share price of the latter moves past Rs.104.

I am holding 200 shares of Mahindra & Mahindra bought at Rs 180. Can I can hold it or liquidate? — J.shankar

Mahindra & Mahindra (Rs 211.3): There appears to be some upside potential for the stock from current levels. A move above Rs 222 without the breach of Rs 200 would reinstate positive trend. On the other hand, a drop below Rs 200 would have negative implications. Long-term investors could take partial profits at current levels and have a stop loss at Rs 184 for the balance. Traders could have a higher stop loss at Rs 198.

Please advise me on the further prospects of Aurobindo Pharma that I bought at Rs 550. — Ramesh Reddy

Aurobindo Pharma (Rs 570.75): The stock appears to have significant upside potential from current levels. A move towards the Rs 690-700 range appears likely. Existing holders need not sell out in a hurry. It would be better to remain patient as the stock could yield significant returns over the long term. Remain invested with a stop loss at Rs 530.

What is the outlook for Archies Greeting and Apollo Hospitals? — Preeti

Archies Greeting (Rs 64): The near term trend does not appear positive. A drop to the Rs 56-58 range appears likely. Only a close above Rs 75 would now impart positive trend in the stock. It would be safer to reduce exposures and contemplate re-entry at a later date.

Apollo Hospitals (Rs 160): The overall outlook for the stock appears positive with a move towards Rs 200 being the preferred view. Only a drop below Rs 150 would negate the positive outlook. Existing holders could remain invested with a stop loss at Rs 150, while a close above Rs 181 could be used to take fresh exposures.

I have HPCL and I-Flex. What are their prospects? — Simhan

HPCL (Rs 424.2): The overall technical outlook for the stock continues to remain bullish. However, the uncertainty associated with the disinvestment of the Government's stake would be an overriding factor that would influence the price trend of HPCL. Unless there is some pressing need for cash, it would be worthwhile to remain invested with a stop loss at Rs 370. The stock has the potential to scale further highs over a longer time frame.

i-flex solutions (Rs 686): The historical price data is inadequate to arrive at a meaningful technical outlook for the stock. Existing holders could remain invested with a stop loss at Rs 620. Fresh buying may be deferred. A trailing stop loss may be employed in the event of an uptrend.

(Note: The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. 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, 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.

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