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B. Krishnakumar

What is the outlook for Glenmark Pharma bought at Rs 341 and Chambal Fertiliser bought at Rs 22.95. Shall I hold or sell these holdings? — Suresh Mittal, Rajesh Kumar

Glenmark Pharma (Rs 309.5): The stock could rule weak or remain confined to a narrow trading range in the near-term.

The long-term positive outlook would reassert itself after the completion of the short-term correction. The stock appears to be headed towards the Rs 400-mark if the trend in the weekly charts is any indication.

The positive outlook would be valid till such time the stock trades above the stop loss level of Rs 257.

Those who prefer to relatively tighter stop loss may have it at Rs 270 for a portion of their holdings and at Rs 257 for the rest.

Chambal Fertiliser (Rs 20.9): The price action over the past few weeks has been devoid of any significant trend. The stock has been confined to a narrow trading and only a breakout from this range would impart momentum.

Till such time, it would be better to stay clear of the stock. For those already holding the stock, it would be advisable to sell a portion of the holding at prevailing market price and retain the rest with a stop loss at Rs 19. Based on the recent price action, only a close above Rs 23 would impart bullishness.

Kindly advise about the prospects of Videocon International bought at Rs 57. — S.V. Shyam

Videocon International (Rs 50.9): Though there is a possibility of a short-term rally, the stock is likely to struggle to move towards your purchase price.

After the expected short-term bounce, another round of weakness is likely to set in. Given this expectation, it would be advisable to reduce exposures. Those willing to take risk may hold with a stop loss at Rs 49. Risk-averse investors and those who are holding a profitable position may reduce exposures at market rate and contemplate re-entry when the price moves past Rs 57.

I bought Pioneer Embroideries at Rs 78 and United Western Bank at Rs 34. How does these stocks appear technically? — R.L. Ohri

Pioneer Embroideries (Rs 73.1): The stock appears to have upside potential from prevailing levels. Hold with a stop loss at Rs 66. A close above Rs 80 would impart strength. If the stop loss gets triggered, fresh buying may be considered on a subsequent move above Rs 80.

United Western Bank (Rs 25.5): Chances of recovery in prices appear remote if the recent price patterns are any indication.

The stock appears to be headed towards Rs 18-Rs 19 range. Fresh buying may be avoided while those already invested may hold with a stop loss at Rs 24.

Shall I hold or exit from Visualsoft bought at Rs 185? — S.S. Reddi

Visualsoft (Rs 153.9): Hold with a stop loss at Rs 140 as the stock could seek higher levels in the near-term.

Only a close below Rs 135 would negate the positive outlook. A move above Rs 161 would impart bullishness and could pave the way for a move to Rs 175-Rs 180.

I am planning to invest in Shipping Corporation. Shall I do so at present levels or wait for declines? — P. Naganathan

Shipping Corporation (Rs 161): The long-term outlook is positive and the stock has significant upside potential. The outlook would be positive till such time the stock trades above Rs 145. In the near-term, the stock could rule weak and a drop to Rs 150-Rs 152 range appears likely.

Those comfortable with a stop loss at Rs 145 may buy at prevailing levels and add more on declines. A drop below Rs 145 would warrant dilution of exposures. Short-term traders may wait for a close above Rs 175 before committing funds.

I have accumulated shares of India Glycol at an average price of Rs 130. What is the short-term outlook and when should I exit? — S.A. Bashu

India Glycol (Rs 130.5): There appears to be little downside risk; the stock could move to Rs 145-Rs 150 range. Only a drop below Rs 120 would impart weakness. There is no reason to sell the stock now. Hold with a stop loss at Rs 120 for a portion of the holding and at Rs 116 for the rest.

I bought Balrampur Chini at Rs 401. What is the outlook and shall I hold or sell? — K.Veera Narayana

Balrampur Chini (Rs 384.7): The stock is in a corrective phase to the earlier upward move. There are no signs of completion of the correction.

An upward move would resume only on the completion of the ongoing corrective phase. Given this backdrop, patient investors may hold on with a stop loss at Rs 366. Those uncomfortable with this stop-loss level may sell a portion of holdings at market rates and have a stop loss at Rs 366 for the rest. Fresh buying may be considered either on price declines or on a move past Rs 435.

I bought Amtek Auto in huge quantity at Rs 168. What is the short-term outlook and should I hold or exit? — M. Sampath

Amtek Auto (Rs 136): There is a possibility of at least a short-term rally towards the Rs 145-Rs 150 range. As there are no signs of the onset of a bullish phase, it would be better to look for opportunities to reduce exposures. At the moment, only a move past Rs 154 would impart bullish momentum.

The stop-loss level for present holdings may be placed at Rs 119.

What is the outlook for Hindustan Petroleum bought at Rs 339.4 and Aftek Infosys? — M. Sundararajan

HPCL (Rs 328.5): The stock has not been in a position to make headway in either direction. It has been stuck in a narrow trading zone for almost four months now. Only a breakout from this trading zone would push the stock back into a trending mode. Till such time, it would be safer to stay away from the stock. A move past Rs 350 would impart strength while a move below Rs 310 would result in a bearish trend. Hold with a stop loss at Rs 310.

Aftek Infosys (Rs 119.1): The near-term outlook appears positive. A move past Rs 124 would impart positive momentum. Hold with a stop loss at Rs 108. Fresh buying may be considered with a close stop loss if the stock moves past Rs 124.

I recently purchased Shanthi Gears at Rs 30. Kindly advice whether to sell or hold. — Rajesh Kumar

Shanthi Gears (Rs 24.4): A drop below Rs 22 would have negative implications. A positive trend would emerge if the stock holds above this level and also manages to move past Rs 26. Hold with a stop loss at Rs 22.

What is the outlook for Gail purchased at Rs 205 and Sintex Industries at Rs 208? — Anil Bhatia

Gail (Rs 198.9): The near-term outlook appears positive and a move to Rs 215-Rs 220 range appears likely. Remain invested with a stop loss at Rs 183. Fresh buying may be avoided. A drop below Rs 183 would warrant reduction of exposures.

Sintex Industries (Rs 224): After a prolonged sideways price action, the stock moved out of the trading range a couple of days ago. The near-term trend is bullish and a move to Rs 240-Rs 245 range appears likely. Hold with a stop loss at Rs 209. Fresh buying may also be considered by traders with a stop loss at Rs 214.

Please highlight the upside potential in Indian Oil and Asahi Glass. — Gopal Khetan

Indian Oil (Rs 440): The long-term trend is bullish. The same, however, cannot be said about the short-term trend. There is no evidence to indicate that the stock is in an uptrend. A move past Rs 450 would trigger a buy signal. Hold with a stop loss at Rs 415. Fresh buying may also be considered with a stop loss at Rs 415, on a move past Rs 450.

Asahi Glass (Rs 122): The stock appears to be set to resume the next leg of upward move. A move past Rs 126 would confirm the positive outlook. Hold with a stop loss at Rs 110. Fresh buying may be considered with a close stop loss once the stock moves above Rs 126.

I am holding shares of IDBI at Rs 94. Please inform the outlook of the scrip. Would it be advisable to buy J.P.Associates at current levels? — Gautam Khanijau

IDBI (Rs 83.8): The stock appears to have completed a leg of the upward move at Rs 95 a few days ago. Though a short-term bounce may materialise shortly, the possibility of a significant and sustained upward move in the near term appears unlikely.

Only a move past Rs 96 would reinstate the long-term uptrend. Hold with a stop loss for a portion of the holding at Rs 80 and look for opportunities to reduce exposures.

J.P. Associates (Rs 148.4): The stock appears to be in a corrective phase. Fresh buying may be considered either on evidence of support at around Rs 130-Rs 133 range or on a break above Rs 165. It is better to defer investments in the stock for the moment. — B. Krishnakumar

I purchased a huge quantity of Ramco Systems at Rs 310 and Orchid Chemicals at Rs 233. Should I hold or sell these stocks? — S. Rajesh

Ramco Systems (Rs 295.8): The near-term outlook appears positive. A move past Rs 306 would impart strength and the stock could move to Rs 325-Rs 330 range subsequently. Hold with a stop loss at Rs 275 for a portion of the holding and at Rs 265 for the rest.

At least partial profit-booking may be considered on a move to the target zone.

Orchid Chemicals (Rs 236.9): The stock has been stuck in a trading zone for quite some time now. A drop below Rs 212 is likely to impart weakness, while a move above Rs 245 would impart positive trend. A meaningful trend would not emerge till such time the stock moves past either of these trigger levels. Those comfortable with the stop loss at Rs 212 may have it at that level; others may remain invested with a stop loss at Rs 223 for a portion of the holding and at Rs 212 for the rest.

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, Chennai 600002. 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. 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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