The Hindu Business Line : Outlook for large-cap stocks

Featured below is the outlook for a few large-cap stocks. We have received queries on these stocks from Shrikant, Satish S. Kkhadke, Nitin R. Kolhe, Kulwant Singh Nagpal,

R.Sakunthala Premkumar, R.K.Gupta, A Mahendran and K Guha.

Tata Tea (Rs 925): Though the short-term trend appears bearish, the stock appears to have the potential to seek Rs 1,250-1,300 in the long-term. The share price is likely to test the support zone at Rs 885-890 and resume the long-term upward trend subsequently. Remain invested with a stop-loss at Rs 905. In the event of a close below Rs 905, investors may reduce exposures and consider fresh entry at Rs 885-890. The long-term positive outlook will be in force as long as the stock holds above the negative trigger level at Rs 850.

Crompton Greaves (Rs 895): The outlook will remain bullish as long as the support level at Rs 878-880 range is not breached. Hold with a stop-loss at Rs 878. Fresh exposures may be considered on the evidence of support at Rs 878-880, as there is a chance of rally to Rs 1,050-1,100. Investors who have entered at fairly lower levels may settle for a stop-loss at Rs 845. Others may settle for Rs 878 as their stop-loss.

Ranbaxy (Rs 444): This is one of the pharmaceutical stocks in which we have a long-term positive view. The stock appears to have completed a major downtrend at the low of Rs .339 recorded a few months ago. The subsequent price action since this low tends to confirm the start of the next leg of the major upward move. We are looking at an initial price target of Rs 575-600. The long-term positive outlook will be invalidated only on a close below Rs 339. As it will be impractical to have a stop loss at this level from a money management perspective, investors may settle for a stop-loss of Rs 402. Fresh exposures may be considered on weakness, with a stop-loss at Rs 402.

ACC (Rs 593): The outlook is positive and a move to Rs 625-630 appears likely. Remain invested with a stop-loss at Rs 572. Fresh exposures may also be considered on weakness, with a stop-loss at Rs 572. Use a trailing stop-loss in the event of a rally past the target zone.

IDBI (Rs 86): Taking into account your entry price and the short-term positive outlook, it will be advisable to hold with a stop-loss at Rs 81. A move to Rs 95-98 appears likely. A close below Rs 81 will negate the positive outlook and will push the stock to Rs 72-75.

More Stories on : Technical Analysis | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page