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B. Krishnakumar

Please let me to know the future prospects Gail. — Ramakrishna S. Bhat

Gail (Rs 164.6): The near-term trend appears weak and a drop to the Rs 145-150 range appears likely. The stock could resume the uptrend after testing the Rs 140-145 range. Existing holders, especially the ones holding profitable position, may take partial profits on price upmoves. Only a close above Rs 215 would impart sustained buoyancy.

I am proposing to add Indian Overseas Bank and Moser Baer to my portfolio. What is the outlook for these two stocks? — Mahadevan & Rahul Tripati

Indian Overseas Bank (Rs 45.6): Fresh positions may be avoided for the moment, as the stock is yet to complete its ongoing downtrend. The stock is likely to drop to the Rs 35-38 range. Evidence of support at this range may be used to take long positions.

Moser Baer (Rs 220): After a short-term rally, the stock could drop to lower levels of the Rs 195-200 range. It would be better to wait for declines, before taking fresh exposures. Evidence of support at the Rs 195-200 range may be used to take long positions.

Please analyse the outlook for India Cements and Andhra Bank. — V,V. Sundaram

India Cements (Rs 35.7): The stock is stuck in broad trading range in the recent weeks. Only a break out from this range would impart decisive trend. Till such time, it would be better to stay away from the stock. Existing holders may remain invested with a stop-loss at Rs 32 for a portion of the holdings. For the balance, the stop-loss may be placed at Rs 28. Those uncomfortable with the stop-loss at Rs 28 may have the stop-loss at Rs 32 for the entire holdings. Only a move past Rs 53 would impart positive trend.

Andhra Bank (Rs 46.5): The stock has moved in line with earlier expectations. As mentioned last week, a weak trend prevailed, pushing the stock below the earlier target of Rs 50-52. The recent downtrend does not appear complete. A drop to the Rs 38-39 range appears likely. Fresh buying may be deferred till such time there is an indication of onset of an uptrend.

Is it the right time to purchase Federal Bank? — Tarun K. Gupta

Federal Bank (Rs 280.2): The outlook for the stock does not appear too positive. A drop to the Rs 240-250 range is not ruled out. There is no point buying the stock now. Existing holders may look for opportunities to reduce exposures. Fresh buying may be considered on evidence of support around the Rs 240-250 zone.

I would like to know the market projections and outlook for Hinduja TMT. — Rahul Tripati

Hinduja TMT (Rs 176.6): As observed in earlier weeks, the stock appears on course to target zone of Rs 140-145 range. Technically, there is no reason to take exposures in the stock at present levels. Existing holders may remain invested with a stop-oss at Rs 145. Fresh buying may be avoided for the moment.

I am holding i-flex Solutions at Rs 620 and Jindal photo at Rs 48. Please let me know if it is worth to hold on sell these stocks at market rates. — R. Swaminathan

i-flex Solutions (Rs 474.6): The recent downtrend does not appear complete as yet. The stock is likely to rule weak and a drop to the Rs 400-410 range appears likely. It would take quite some time and effort for the stock to recover anywhere towards your purchase price. There is a scope for relief rally to the Rs 520-530 range. Remain invested with a stop-loss at Rs 450 for a portion of the holding. Short-term price upmoves may be used to liquidate holdings.

Jindal Photo (Rs 40.2): Though the chart pattern does not provide a clear picture of the long-term outlook, there is no evidence of positive momentum either. There is no reason to remain invested. Look for opportunities to reduce exposures. A portion of the holdings may be sold at market rate and balance may be retained with a stop-loss at Rs 35. Those uncomfortable with a stop-loss at Rs 35 may look to sell at market rates.

Please enlighten about the prospects of Sundram Fasteners bought at Rs 100 and Bharti Tele-Ventures at Rs 169. — Sadiq Pasha

Sundram Fasteners (Rs 90.6): The short-term outlook does not appear too positive. A drop to the Rs 75-80 range appears likely. A portion of the holdings may be sold at market rates and the balance may be retained with a stop-loss at Rs 84. At the moment, only a move past Rs 110 would impart positive trend.

Bharti Tele (Rs 143.6): The stock is heading towards a crucial support level at the Rs 128-130 level. A breach of this range would result in the completion of a bearish "Head and Shoulder" pattern. This would have negative implications for the stock. Long-term holders may remain invested with a stop-loss at Rs 127. Those uncomfortable with this stop-loss level may reduce exposures at current market rates.

Please provide your view on GE Shipping Aarti Industries; Shall I buy at the prevailing price. — Narendra Reddy

G.E.Shipping (Rs 103.5): There is no reason to take exposures at present levels as the near-term outlook appears weak. The stock could drop to the Rs 85-90 range in the near term. Evidence of support at this range may be used to take exposures. Fresh buying may be avoided for the moment. Existing holders may hold on with a stop-loss at Rs 95.

Aarti Industries (Rs 165.4): The stock is ruling close to the key support level at the Rs 159-162 range. A drop below this range could push the stock to the Rs 130-135 range. Existing holders may remain invested with a stop-loss at Rs 160. Fresh buying may be deferred till such time there is indication of the onset of an uptrend. A move past Rs 200 would indicate that the downtrend is complete.

Can I enter Canara Bank at present levels or wait for lower levels? — A.K. Jha

Canara Bank (Rs 135): The stock is likely to drop to the Rs 115-120 range. The stock is likely to seek support at about this range. A drop below Rs 115 would have negative implications for the stock. There is no reason to take exposures at present price level. A close above Rs 160 would impart positive momentum. It would be better to wait for a breach of Rs 160 before contemplating long positions.

As observed by you, Aftek Infosys rallied to the resistance level of Rs 80-82 and reversed there. I have a huge holding and should I dispose the entire lot or only a portion at current levels? — P.V. Ramanathan

Aftek Infosys (Rs 69.2): Look for opportunities to reduce a major portion of your holdings, as there appears to be little scope for any significant price appreciation in the near term. For the balance, have a stop-loss at Rs 63.

What is the outlook for Sail now that it has breached your stop-loss of Rs 34? — Kishore Matta.

Sail (Rs 29): Now that the stop-loss level mentioned earlier has been breached, there is no point holding on to the long positions. A drop to the Rs 20-22 range is not ruled out. Those who have entered at fairly lower levels may think about holding on to their exposures. Others may look for opportunities to reduce exposures. Re-entry may be considered once the stock embarks on a fresh uptrend.

Would you kindly let me know what are the short-term and long-term prospects of Birla Corp and Century Textiles? My purchase price is in the range of Rs 37, for both the shares. — Veena Jagwani

Birla Corp (Rs 107.6): Though the stock could rule weak in the near term, the medium-term outlook appears positive. After the completion of the short-term downtrend, the stock could resume the uptrend. Only a drop below Rs 93 would blunt the positive outlook. A break past Rs 130 would help the stock move to the next target of the Rs 145-150 range. Taking into account your entry price and positive outlook, there is no reason to sell at current levels. Remain invested with a stop-loss at Rs 90.

Century Textiles (Rs 130.2): The stock has reversed direction at Rs 145, which is not far from the earlier high of Rs 151.3. It remains to be seen whether the near-term price action results in the conformation of a bearish "double top" pattern. A close above Rs 160 would negate the positive outlook. A drop below Rs 105 would result in a drop to Rs 80. A break of Rs 80 would have major negative consequences. Sell a portion of the holdings at present levels and retain the balance with a stop loss at Rs 105. Those uncomfortable with this stop-loss level may have it at a slightly higher level of Rs 120.

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.

(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)

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