The Hindu Business Line : Query Corner

Torrent Pharma (Rs 427.3): The outlook for the stock is positive. A move to the Rs 460-470 range appears likely in the near term. Taking into account the positive outlook and your cost of acquisition, it would be worthwhile to remain invested. Remain invested with a stop loss at Rs 410. Investors who have entered at much lower levels may have a stop loss at Rs 384.

India Cements (Rs 41.6): Though the long-term outlook is bullish, the stock is currently in a sideway consolidation phase. Only a move above Rs 46 would reinstate upside momentum. Remain invested with a stop loss at Rs 35, as the stock could move to the Rs 58-60 level. A drop below Rs 34 would invalidate the positive outlook and could push the stock to lower levels.

I had bought the shares of Sterlite Industries at Rs 1569 with the hope that the overseas listing of Vedanta would take it up. But it has been falling recently. What should I do? I also have the shares of HFCL. What is the outlook for the stock? — Dushyant Barara & V.K.Bhatnagar

Sterlite Industries (Rs 1164.3): After moving to the earlier mentioned (edition dated November 16) target zone of Rs 1600-1650, the stock has turned bearish in the past few weeks. Though the long-term outlook remains bullish, there is no evidence of the completion of the recent short-term downtrend.

The stock is likely to move to the Rs 1700-1750 range on the completion of the ongoing downward phase. However, a close below Rs 980 would negate the positive outlook and could push the stock to further lows.

Aggressive investors may have a stop loss at Rs 980; conservative investors may have a stop loss at a level of Rs 1100.

Himachal Futuristic (Rs 18.2): The share price has been on a major downtrend since February 2000.

There is no evidence of the reversal of this downtrend. Investors willing to take a risk may remain invested as a short-term uptrend to the Rs 24-25 range may materialise.

A drop below Rs 14.5 would, however, negate the possibility of a short-term rally. Remain invested with a stop loss at Rs 14.5.

I have 100 shares of Bank of Baroda at Rs 190 and 100 share of D-Link. Can I hold on? — Prakash Thacker

Bank of Baroda (Rs 182.2): The stock appears to have completed the recent downtrend and a move to the Rs 215-220 range appears likely.

The upmove on Friday indicates that the stock could have commenced a new short-term uptrend. Remain invested with a stop loss at Rs 152. Aggressive traders can take long positions on a close above Rs 195, with a stop loss at Rs 170.

D-Link (Rs 196.9): There appears to be upside potential from current levels. A move to the Rs 220-225 range is not ruled out. Only a close below Rs 178 would impart bearish trend, Remain invested with a stop loss at Rs 178.

I am holding a huge stake in Tata Teleservices bought at Rs 20. Kindly advise the long-term prospects of this company as I intend to accumulate more for long-term investment. — R. Rajasekaran, Mani Aiyar, Kallicharan, Kamaendra Singh & Bandaru Satish

Tata Teleservices (Rs 19.9): As mentioned on earlier occasions, the long-term outlook for the stock is positive. A move to the Rs 27-28 range appears likely. The stock, however, could drop to the Rs 16-17 range in the near term.

The positive outlook would be negated only if the share price drops below Rs 14. Remain invested with a stop loss at Rs 14. Price dips could be used to take fresh exposures with a stop loss at Rs 16.

I would like to invest a sizable amount in good stocks with a long-term perspective. Can you recommend some good candidates? — R. Rajasekaran

We do not provide individual portfolio management service to the readers You can take a look at the individual stock recommendations elsewhere in this edition.

It is always better to approach a professional fund manager or a firm offering portfolio management service to handle your investible surplus.

I hold shares of Rain Calcining. Can you tell me what is the future of this stock and till what time should I hold it? — Devendar & Srikanth

Rain Calcining (Rs 24.9): The stock appears to have the potential to move past the Rs 30-mark. A drop below Rs 20, however, would invalidate the positive outlook and would impart a bearish trend.

Investors, who have entered at lower levels, may have a stop loss at Rs 20. More conservative ones may have the stop loss at a slightly higher level of Rs 22.

Depending on the risk-taking ability, investors holding a huge quantity may have a stop loss for a portion of their holdings at Rs 22 and at Rs 20 for the remaining portion of their holdings.

What is outlook for Glenmark Pharma? — S.N. Sivasubramanian, R. Sakuntala

Glenmark Pharma (Rs 129.9): As mentioned earlier (edition dated December 7), the stock is in the midst of an uptrend. For investors who are "in-the-money", there is no need to sell out in a hurry.

A move to Rs 200 appears likely. Patient long-term investors are likely be handsomely rewarded. Only a drop below Rs 85 would negate the positive outlook. Remain invested with a stop loss at Rs 110.

What is the outlook for Jindal Drilling and GTL? — Ashok Sharma & K.Radha

Jindal Drilling (Rs 271.7): There appears to be limited upside potential from present levels. A move to the Rs 300-310 range appears likely. A drop below Rs 230, however, would negate the positive outlook. Remain invested with a stop loss at Rs 230. Fresh buying may be avoided for the moment.

GTL (Rs 86.5): The short-term outlook appears positive. A move to Rs 100 is not ruled out. A close above Rs 105 could impart further positive momentum to the stock.

Remain invested with a stop loss at Rs 78. Investors willing to take risk may contemplate long positions on a close above Rs 90 with a stop loss at Rs 82.

Should I hold or sell my stake in Cadila Healthcare and Maruti Udyog? I got allotment of both the shares in the IPO. — G. Ashok

Cadila Healthcare (Rs 401.3): The overall outlook for the stock is bullish. The stock could seek the Rs 440-450 range in the near term.

Taking into account your cost of purchase and long-term prospects, there is no need to sell the stock in a hurry. Remain invested with a stop loss at Rs 364.

Maruti Udyog (Rs 358.6): There is limited price history available for this stock. As a result, it would be difficult to arrive at a technical outlook at the moment.

Taking into account the near-term upside potential for the stock market as a whole, it would, however, be worthwhile to remain invested with a stop loss at Rs 310.

I bought Savita Chemicals at Rs 126. Should I hold or sell at current levels? — P. Mohandasan

Savita Chemicals (Rs 135.6): There is no need to liquidate holdings in a hurry as the stock has significant upside potential from present levels.

A move to the Rs 160-170 range appears likely. Remain invested with a stop loss at Rs 125.

You have maintained that the Nifty is in the final stage of the uptrend and steep correction is long over due. If this happens, will the earlier positive outlook for Polaris Software change? I have taken quite a large position in the scrip at Rs 201. Kindly guide me on the strategy to be adopted. — Raju

Polaris Software (Rs 220): Theoretically, it is not necessary that a drop in Nifty or an index should have a negative impact on the share price of a particular company. In the case of Polaris Software, the stock has hit the near-term target zone of Rs 225-230 that was mentioned earlier. The earlier mentioned long-term target of Rs 300 is still valid.

Only a close below Rs 190 would invalidate the view. Considering that you have invested a huge sum in this stock, it would be a safer strategy to book profits, at least on a portion of your portfolio. For the remaining holding, a stop loss may be placed at Rs 203. A move above Rs 230 could be used to take fresh long positions.

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.

(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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