The Hindu Business Line : Query corner

Reliance Capital (Rs 77.8): The stock could seek higher levels in the near term. A move to the Rs 105-110 range appears likely. There is no technical reason to sell the stock at current levels. Remain invested with a stop loss at Rs 70. Aggressive risk-seeking traders could contemplate long positions on a close above Rs 85.

Nicholas Piramal (Rs 439.3): The outlook appears positive and a move to the Rs 550-560 range appears likely. Remain invested with a stop loss at Rs 400. Considering that the stock is in the early stages of a major rally, this stock could yield handsome returns for investors willing to wait for at least six months.

I have shares of Nahar Spinning and IPCA Laboratories. Please advise on the prospects of the two companies. — S. Ramamurthy

Nahar Spinning (Rs 108.3): Taking into account the entry price and positive outlook, there is no need to liquidate holdings at current levels. The stock appears to have the potential to seek Rs 200 levels. Remain invested with a stop loss at Rs 95. Only a close below Rs 90 would negate the positive outlook.

IPCA Laboratories (Rs 557.5): The overall outlook remains positive. The stock has significant upside potential from current levels. A move past Rs 595 would confirm the positive outlook and could push the stock past the Rs 700 mark. Existing holders could remain invested with a stop loss at Rs 500. A move past Rs 595 could be used to take fresh long positions.

Please advise about IPCA Labs and Shyam Telecom. — S.Sankar, Jai Prakash Goyal & Sushil Gupta

IPCA Labs (Rs 557.5): The outlook for the stock is positive. A detailed view on the stock is carried as a response to the previous query.

Shyam Telecom (Rs 54.7): Though there is a risk of a drop to the Rs 40-42 range, the overall outlook appears positive. A close above Rs 62 would impart long-term bullishness. Investors who are holding profitable position may remain invested with a stop loss at Rs 50. Risk seeking investors could place the stop at Rs 46. A close above Rs 62 could be used to take fresh long positions.

I am holding Lupin and E-serve International. Should I hold or sell? — S. Roopchand Jain

Lupin (Rs 499.8): After a sharp uptrend in the recent months, the stock has been in a corrective phase over the last couple of weeks. The overall outlook appears positive. There is no need to reduce holdings in a hurry. A close below Rs 410 would warrant dilution of holdings. On the other hand, a close above Rs 610 would impart a bullish momentum to the stock.

E-serve (Rs 751.4): There is some upside potential from current levels. It would be better to hold on with a stop loss at Rs 680. Partial profit booking may be considered on a move past Rs 800. Only a drop below Rs 630 would completely negate the positive outlook.

Can I take short positions in ACC in the futures market? — Rajiv Virwani

ACC - Near-month futures (Rs 208.4): The overall trend is positive. Considering that it is always safer to trade with the overall trend in force, it would be a risky proposition to take short positions in ACC. Long positions may be considered with a stop loss at Rs 198. High risk-seeking traders could take short positions with a close stop loss if the stock closes below Rs 198.

Is it worth having Strides Arcolab in the portfolio? — Bal Krishna Asopa

Strides Arcolab (Rs 151): The stock is currently stuck in a narrow band. Only a move above Rs 174 would reinstate positive trend. There is no technical reason to take fresh long positions in the stock at current levels, as there are other stocks in the pharmaceutical sector with a stronger bullish momentum. Existing holders may, however, remain invested with a stop loss at Rs 141.

What is the outlook for BPCL and IPCL? — R. Vijayakumari

BPCL (Rs 364.3): The overall outlook for the stock appears positive. A move towards the 475-500 range appears likely. Only a close below Rs 300 would negate the positive outlook. Considering that the company is a disinvestment candidate, developments on the sell-off front would have an overriding impact on the direction of the price movement, and technical analysis would be of little avail in such a situation. Always have a stop loss at a psychologically comfortable level to protect against unfavourable price action.

IPCL (Rs 178): The price pattern indicates that the stock is in a strong bullish trend. A move to Rs 200 appears likely. Taking into account your entry price and positive outlook, there is no reason to sell the holdings at current levels. Remain invested with a stop loss at Rs 165.

I bought Federal Bank at Rs 170. What is the near-term outlook for the stock? — B.P.C. Sharma

Federal Bank (Rs 158.4): The stock appears to have the potential to touch the Rs 200 mark in the near term. Only a close below Rs 130 would negate this view. There is no need to dilute holdings in a hurry or under distress. A portion of the holdings may be liquidated even if the stock drops below Rs 130, as there is always a strong possibility of a recovery.

Should I hold or exit from TVS Motor? — Jai Prakash Goyal

TVS Motor (Rs 867.5): The overall outlook is positive. A move past Rs 1,000 appears likely. The recent stock split decision would keep market interest alive in this stock. Remain invested with a stop loss at Rs 750.

What are the future prospects of NIIT (bought at Rs 175)? — R. Nagarajan

NIIT (Rs 148.8): The stock appears to have the potential to seek higher levels and could move past your entry price. Only a drop below Rs 135 would impart bearish trend. Remain invested with a stop loss at Rs 135.

I purchased Andhra Bank at Rs 15 and Apollo Tyres at Rs 179. Please let me know whether I can wait for an upswing or book profits at the current levels. — Anuradha

Andhra Bank (Rs 42): There is still some upside potential in the stock. A move to the Rs 50-55 range is not ruled out. Taking into account your entry price and upside potential, it would be better to remain invested. Have a stop loss at Rs 36.

Apollo Tyres (Rs 173.4): The overall outlook remains positive. The stock could appreciate by at least 25-30 per cent from current levels. Remain invested with a stop loss at Rs 154. A close below Rs 153 would warrant liquidation of holdings.

I have bought shares of Jindal Vijaynagar (at Rs 17). Should I hold or book profit? Ishwar Sharma

Jindal Vijayanagar (Rs 14): There appears to be little downside risk in the stock. Risk-averse investors could place a stop loss at Rs 12. The stock has the potential to recover to the Rs 18-19 range after the completion of the ongoing corrective phase.

I would like to buy Bharti Tele and GE Shipping at the present levels. Please advise me on the future outlook of these companies. — Bharath.

Bharti Tele (Rs 75): Though there is a possibility of a short-term decline to Rs 59-60 levels, the overall outlook appears positive. The stock is likely to resume its uptrend and move past Rs 100. Given this backdrop, it would be better to adopt a wait-and-watch strategy before taking exposures. A close above Rs 83 could be used to take long positions. Alternatively, long positions may be considered on the evidence of support at the Rs 60-63 range.

GE Shipping (Rs 86): Taking into account the possibility of a move to Rs 100, long positions may be considered at current levels with a stop loss at Rs 78. Existing holders could remain invested with a stop loss at Rs 74.

(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)

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