The Hindu Business Line : Query Corner

A close below Rs 760 would indicate that the stock is headed to lower levels of Rs 675-680. Investors willing to take risk may hold with a stop-loss at Rs 760.

The rest may sell at least a portion of their holdings now. In the long-term, the stock could move to Rs 1,100-1,150. Fresh exposures may be considered on a close above Rs 900, as this would confirm the resumption of the long-term upward trend.

What is outlook for Gujarat NRE Coke and is it advisable to buy the stock at prevailing levels? Hemant Kothari, Punita Shethia

Gujarat NRE Coke (Rs 94.4): The stock has been in a major downtrend after having touched a high of Rs 171 in March 2005.

The price action in the past few weeks suggests that the earlier downtrend is complete. The stock appears to have commenced the next leg of the upward move at the low of Rs 80.8 recorded a few weeks ago.

A move to Rs 118-120 appears likely in the near-term. A close above Rs 121 would confirm that the fresh leg of the upward trend has gotten underway. Shareholders may remain invested with a stop-loss at Rs 84. Fresh exposures may also be considered on weakness, with a stop-loss at Rs 84.

What are your thoughts on Gayatri Sugars Rs 17? Suraj, Naidu

Gayatri Sugars (Rs 18): The short-term outlook would be positive as long as the stock holds above Rs 13.4. Remain invested with a stop-loss at Rs 13.3.

Fresh exposures may be avoided. A close above Rs 18.5 would impart bullish momentum and the stock could move subsequently to Rs 21.5-22.

Shall I hold or exit from Dabur India and Bajaj Hindusthan? Ajay Gupta, Premila

Dabur India (Rs 128): The short-term outlook is positive and a move to Rs 138-140 appears likely.

The positive outlook would be negated on a close below Rs 116.

Fresh exposures may be considered on weakness with a stop-loss at Rs 116. Use a trailing stop-loss on a move past the target zone.

Bajaj Hindusthan (Rs 505): The stock has seen a spectacular bull run in the recent years.

The upward trend does not appear complete and a move to Rs 555-560 appears likely. Remain invested with a stop-loss at Rs 450.

Fresh exposures may also be considered on the evidence of support at Rs 470-475 range, with a stop-loss at Rs 465.

Please let me have your views on IDFC bought at Rs 73. Valli Kasi

IDFC (Rs 73.6): The stock has managed to hold above the crucial support level at Rs 64-66. The near-term outlook is positive and a move to Rs 82-83 appears likely.

The short-term outlook would be positive as long as the stock holds above this support zone. Have a stop-loss at Rs 63 for all long positions.

Fresh exposures may also be considered on weakness, with the same stop-loss.

I recently bought McDowell at Rs 800 and UB Holdings at Rs 650. Please indicate if there is upside potential from these levels. Sandeep Dabhi, Suma

McDowell (Rs 820): It would be advisable to sell a portion of the holdings at prevailing levels as the stock has reached overbought region. A short-term correction may materialise shortly.

Those who have entered at fairly lower levels may hold with a stop-loss at Rs 740. The long-term outlook is positive and the stock would resume its journey towards the target zone of Rs 950-1000 on the completion of the expected short-term correction. The long-term positive outlook would be negated only on a close below Rs 660.

UB Holdings (Rs 740): The near-term outlook is bearish and a drop to Rs 695-700 appears likely. Investors willing to take risk may remain invested with a stop-loss at Rs 675.

Others may sell a portion of their holdings now and consider fresh exposures on the evidence of support at Rs 695-700, with a stop-loss at Rs 675.

The long-term outlook is bullish and a move to Rs 845-850 appears likely. The long-term positive outlook would be negated only on a close below Rs 620.

Considering that having a stop-loss at Rs 620 would be impractical from a money management angle, investors may settle for a stop-loss of Rs 675.

Is it advisable to invest in Astra Microwave at prevailing levels? Shall I hold or sell LIC Housing bought at Rs 190.Vinod

Astra Microwave (Rs 204): Hold with a stop-loss at Rs 185. Fresh exposures may be considered on a close above Rs 220. A close below Rs 185 would impart further weakness and could push the stock down to Rs 145-150.

LIC Housing (Rs 214): The stock has been in a major downtrend from the high of Rs 283 recorded in April 2005.

This downtrend appears to have been completed at the recent low of Rs 186.

The stock appears to have commenced the next leg of the upward move and a move to Rs 245-250 appears likely.

Hold with a stop loss at Rs 190. Fresh exposures may be considered on weakness, with a stop-loss at Rs 190.

Is it advisable to remain invested in Tata Chemicals bought at Rs 255? Tejas Shah, J.J.Pinto

Tata Chemicals (Rs 268): The short-term outlook is positive and a move to Rs 310-320 appears likely.

This view would be valid as long as the price holds above the stop-loss level of Rs 244. Hold with a stop-loss at Rs 244 while fresh exposures may be considered on a close above Rs 280.

What is outlook for Agro Dutch Industries bought at Rs 44? Sreenivas

Agro Dutch (Rs 34.8): The earlier downward trend appears to have been completed at the recent low of Rs 31. There appears to be negligible downside risk from prevailing levels. The stock is likely to move to Rs 45-46 shortly. This view would be negated on a close below the stop-loss level of Rs 30.

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.