The Hindu Business Line : Query corner

India Cements (Rs 163): The near-term outlook is positive and a move to Rs 195-200 appears likely. Investors may hold with a stop-loss at Rs 150. Fresh exposures may also be considered on weakness, with the same stop-loss. Evidence of support at Rs 155-158 may be used to enhance exposures. Investors willing to wait for a while may get opportunities to exit at Rs 245-250. The positive outlook would be negated on a close below Rs 150.

Is it advisable to buy Rajesh Exports and Shiv-Vani Universal at prevailing levels? E. Raju

Rajesh Exports (Rs 210): Fresh exposures may be considered with a stop-loss at Rs 190. The stock could move to Rs 245-250 in the short term.

The recent upward move has pushed to the stock into a short-term overbought zone.

After a brief downward correction, the stock is likely to resume the upward move towards this target zone.

The bullish view would be in force as long as the price holds above Rs 190.

Shiv-Vani Universal (Rs 185.4): The price action in the past few months has been devoid of any significant trend. It would, therefore, be better to stay away from this stock for the moment.

A move past Rs 200 would impart positive trend. Investors may buy the stock on a close above Rs 200, with a stop-loss at Rs 182.

What is the outlook for Viceroy Hotels? Ms Rao

Viceroy Hotels (Rs 102): Hold with a stop-loss at Rs 92 as the long-term outlook is positive.

The stock could move to Rs 125-130 in the near term. The positive outlook would lose validity on a close below Rs 92. Fresh exposures may be deferred. Reduce exposures on a close below this level.

What is the outlook for Shri Digvijay Cement bought at Rs 145 and Prajay Engineers at Rs 96? Ajay Kumar

Shri Digvijay Cement (Rs 269): Taking into account your entry price and long-term positive outlook, there is no reason to exit from the stock now.

The stock is likely to move to he target zone of Rs 305-310 in the near- term.

Remain invested with stop-loss at Rs 249. Fresh exposures may also be considered on the evidence of support at Rs 255-260, with a stop-loss at Rs 249.

Prajay Engineers (Rs 139.3): The share price is in a major uptrend and it appears to be headed towards Rs 165-170. The positive outlook would be negated on a close below Rs 113. Investors who feel that a stop-loss at Rs 113 is too wide for comfort may settle for a level of Rs 124.

Please let me know have your views on Medicaps bought at Rs 120 and Amtek India Rs 115.120. J.J.Pinto

Medicaps (Rs 87): After moving to a high of Rs 130, the stock has been in a sharp downtrend in the recent weeks. There are no signs of the completion of this downward move.

Considering that the stock has already fallen considerably from your entry price, there is no point hanging on to the investment as there are no signs of completion of the downtrend.

Reduce holdings at prevailing levels and avoid fresh exposures.

Only a close above Rs 100 would infuse a positive trend.

Amtek India (Rs 121): The stock appears to have recently completed the downward correction that commenced in September 2005.

The upward move from the recent low of Rs 95 appears to be the start of next leg of the long tem uptrend. The stock appears to be headed towards Rs 145-150 in the near-term. Remain invested with a stop-loss at Rs 109. Fresh exposures may be considered on weakness, with the same stop-loss.

Shall I hold or exit from Tata Chemicals and NTPC bought at Rs 180 and Rs 120 respectively? Sudhi, Ajay Gupta

Tata Chemicals (Rs 255): The outlook is positive and a move to Rs 285-290 appears likely. There is no reason to sell the stock now, as the long-term outlook is bullish.

Remain invested with a stop-loss at Rs 242. Fresh exposures may also be considered with the same stop-loss.

Consider partial profit-booking on the evidence of resistance at Rs 285-290.

NTPC (Rs 138): There is an upside potential extending up to Rs 155-160. This view would be invalidated on a close below Rs 128.

Hold with a stop-loss at this level. Fresh exposures may be considered on weakness, with a stop-loss at Rs 128.

Consider partial profit booking on the evidence of resistance at Rs 155-160.

What is the outlook for Aegis Logistics? Krishnamoorthy, P.Raghave Rao

Aegis Logistics (Rs 263): The stock appears to have completed the downtrend at the recent low of Rs 241. The subsequent recovery appears to be the start of the next segment of the upward move.

A move to Rs 295-300 appears likely. This view would be valid if the price holds above the stop-loss level of Rs 240.

A close below Rs 240 would indicate the earlier downtrend is not over and the stock is likely to continue to drop to lower levels.

Is it the right time to exit from TIL and CESC? Vasantha Balakrishnan

TIL (Rs 256): The near-term outlook does not appear positive. The stock could drop to Rs 240-245.

Only a close above Rs 275 would reinstate the positive outlook.

Investors holding a profitable position may consider partial profit-booking at prevailing levels. Have a stop-loss at Rs 239 for the balance holding.

Fresh exposures may be considered on the evidence of support at Rs 240-245, with a stop-loss at Rs 239.

CESC (Rs 334): Though the long-term outlook is positive, the stock could seek lower levels in the near-term.

A drop to Rs 305-310 appears likely. A move to Rs 365-370 may materialise if the stock manages to hold ground at Rs 305-310. Hold with a stop-loss at Rs 327. Reduce exposures on a close below Rs 327. Fresh exposures may be considered if the stock seeks support at Rs 305-310. Stop-loss for long positions may be placed at Rs 303.

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, Kasturi & Sons, 859-860, Anna Salai, Chennai 600 002.

We would endeavour to answer as many queries as possible. However, constraints of space will limit the responses featured in this column.

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