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B. Krishnakumar

I bought Maruti Udyog at Rs 388. Please advise about the near-term outlook for the stock. — V. Murugan

Maruti Udyog (Rs 434.5): The outlook has improved following the recent recovery in the share price. The stock could move to the Rs 490-500 range. A move past Rs 445 would indicate that the stock is in a bullish mode and confirm the possibility of a rally to the target zone. The positive view would be negated if the share price declines below Rs 397. Stakeholders may have a stop-loss at Rs 410 for a portion of the holding and at Rs 397 for the balance. Those willing to take risk may have the stop-loss for the entire holding at Rs 397.

Please let us know if I should sell or hold Bank of India bought on your recommendation? Also provide your views on Shipping Corporation of India. — Sunil K. Jha, Vallikasi, Deepa, S. Sundar & Seema Mittal

Bank of India (Rs 80): The share price has moved past the earlier mentioned (edition dated October 3) target zone of Rs 63-65. The outlook for the stock remains bullish. A move to the next target zone of Rs 88-90 appears likely. Hold with a stop-loss at Rs 70. A trailing stop-loss may be employed if the stock continues its uptrend past the target zone of Rs 88-90.

Shipping Corporation (Rs 180): Though the stock could rule weak in the near term, the long-term trend remains bullish. The share price could move to the Rs 200-205 range on the completion of the expected short-term weakness. The positive outlook would be negated if the stock drops below the negative trigger level of Rs 155. Though having a stop-loss at Rs 155 would be desirable, it may not be practically feasible owing to the huge difference between the prevailing price and the stop-loss level. Remain invested with a stop-loss at Rs 170. Fresh buying may also be considered on a move above Rs 190, with a suitable stop-loss in place.

What are the future prospects of Wheels India. and how does it look on the charts? — K.S. Murali Krishnan

Wheels India (Rs 257.1): The long-term trend is bullish and a move to the Rs 295-300 range appears likely. A move past Rs 320, could help the stock move to the Rs 395-400 range. At the moment, there is no reason to sell the stock. A drop below Rs 235 would blunt the positive outlook. Hold with a stop-loss at Rs 235. Those who prefer a tighter stop-loss may peg it at Rs 244.

I bought L.G.Balakrishnan Brothers at Rs 29. What is the outlook of the stock and shall I stay invested? — Neeraj, T. Suresh

L.G.Balakrishnan Brothers (Rs 27.5): The stock was covered under the "Focus of the Week" section in the edition dated November 7. The earlier outlook remains unchanged. The stock is expected to move to the Rs 38-40 range. This view would be valid as long as the stock trades above the earlier-mentioned stop-loss level of Rs 22. Those uncomfortable with this stop-loss level may sell a portion of their holdings at prevailing levels and contemplate fresh buying on a move past Rs 31, with a stop-loss at Rs 27.

I hold shares of IPCL bought at Rs 192 and Kakatiya Cement at Rs 84. Please give your short-term and mid-term view on the same. — Khalid Saiyed, Bablu

IPCL (Rs 186.3): There downside risk appears limited. The stock appears to have completed the downward move at Rs 171 last week. The price pattern suggests that the stock could be bracing for the next leg of rally. A move past Rs 200 would confirm the positive outlook for the stock. This would pave the way for a rally to the Rs 245-250 range. There is no reason to sell the stock now. Hold with a stop-loss at Rs 170.

Kakatiya Cement (Rs 85.1): After a drop to the Rs 78-80 range, the stock could resume the uptrend. The share price appears to be headed towards the Rs 100 mark. Hold with a stop-loss at Rs72. Those who prefer a closer stop-loss may place the stop at Rs 78 for a portion of the holding and at Rs 72 for the balance.

What is the technical outlook for MRPL? — Dinesh Singh

MRPL (Rs 51.7): After a prolonged sideways movement, the share price has staged a breakout a couple of days ago. The breakout in price has been accompanied by an increase in trading volume as well. The stock is likely to continue its upward move in the near term. A move to the Rs 60-62 range appears likely in the short-term. Hold with a stop-loss at Rs 45. A drop below Rs 45 would impart weakness.

I have large holdings in Tele Data Informatics at Rs 51. What is the outlook for stock and should I hold/buy or sell at current levels? — Ramesh Srinivasan

Tele Data (Rs 49): The long-term outlook for the stock is positive. The share price is, however, likely to rule weak in the near term. After a sharp spurt, the stock is in a consolidation phase.

The uptrend would resume on the completion of the short-term weakness. The long-term target for the stock is placed at the Rs 58-60 range. The positive view would require a revision if the stock drops below Rs 45. Hold with a stop-loss at Rs 45. Fresh buying may be considered on a move past Rs 55, with a stop-loss at Rs 46.

What are the prospects of Panacea Biotec bought at Rs 139 and Unichem Laboratories at Rs 192? — N. Gomathisankar & M. Gowrisankar

Panacea Biotec (Rs 140.4): The stock is likely to remain either range-bound or seek lower levels in the near term. A drop to the Rs 132-135 range is not ruled out.

The long-term uptrend is expected to resume on the completion of the expected downward trend. Hold with a stop-loss at Rs 130. Those who have entered the stock at fairly lower levels and investors willing to take risk may place the stop at Rs 115. A move past Rs 153 would impart strength. A drop below Rs 115 would negate the positive outlook.

Unichem Labs (Rs 186.2): After a sharp upward move, the stock appears to be in a corrective phase. The earlier uptrend would resume after the completion of the ongoing correction.

The stock appears to have some distance to be covered on the upside. There is no reason to sell this stock now. Hold with a stop-loss at Rs 174 for a portion of the holding and at Rs 162 for the balance.

The stock is likely to move to the Rs 235-240 range. A move past Rs 201 would increase the odds of the stock hitting the target zone.

I would like to know the outlook for PNB Gilts bought at an average price of Rs 24 and IFCI at Rs 14. Should I hold or sell off at current low price and book loss? — Dilip, Sheik

PNB Gilts (Rs 19.3): The recent price pattern and the positive divergence between the key indicators and the daily price movement suggest that the stock may have completed a major downward move at Rs 16.75 on November 11. The near-term outlook appears bullish. There is a possibility that the stock would move past your entry price of Rs 24. There is no reason to sell the stock now. Hold with a stop-loss at Rs 17. A move past Rs 20 may be used to take fresh exposures, with a stop-loss at Rs 18.

IFCI (Rs 11.1): The price movement has been devoid of any trend on either direction. Though the stock could move towards the Rs 13.5-14 range, the recent price movement does not inspire confidence. Look for opportunities to reduce exposures on price rise. A portion of the holding may be held with a stop-loss at Rs 9.

What is your opinion on Asahi India (bought at Rs 135) and Indswift Labs at Rs 192? Do you consider the volume of trade also in your response to queries or is it just the price movement? — Perumal

Traded volume is a reliable indicator and can be meaningfully used along with the analysis of price movement. We do attach significance to traded volume while furnishing opinion on this page. However, the reliance is more on price patterns. Typically, trading volume tends to increase when the price rally gathers momentum. It would be preferable and we always strive to identify stocks that are set to enter this acceleration phase.

Asahi India (Rs 138.3): The near-term trend is positive. A move to the Rs 155-160 range appears likely. The stop-loss for long positions may be placed at Rs 129. Fresh exposures may also be considered with a stop-loss at Rs 129.

Indswift Labs (Rs 200): After a short-term weakness, the stock is expected to move to the Rs 225-230 range. Remain invested with a stop-loss at Rs 185. A move past Rs 214 would impart strength. Fresh buying may be deferred.

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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