The Hindu Business Line : Query Corner

MRO-TEK (Rs 61): The price of MRO-TEK has recovered smartly since the low of Rs 49 made on June 13. The price is currently in a medium term uptrend. There is a possibility of a breakout to Rs 72 or Rs 75 in the short- term. The long-term targets are Rs 86 and then Rs 105. Long-term investors can hold this stock with a stop-loss at Rs 40.

I have shares of Reliance Natural Resources (RNRL). What are the prospects of this company? Anand, Manikantan B, Krishna Hegde

RNRL (Rs 20): RNRL listed recently so we do not have enough data to do adequate technical analysis. The short-term resistance for RNRL exists at Rs 24 and then at Rs 27. The Rs 27 level needs to be crossed strongly for the price to go to Rs 32 again. Short-term traders can exit if price reverses from the Rs 25 to Rs 27 zone. Long-term investors can hold with a stop-loss at Rs 15.

What are the prospects of Suzlon Energy and Siemens. Lakshmipathi

Suzlon (Rs 954): The momentum is picking up in both the daily as well as the weekly chart of Suzlon since it formed a higher bottom at Rs 910. Long-term investors can hold with a stop-loss at Rs 750. Buying in dips is also recommended with the same stop-loss. Price can move to Rs 1,400 or Rs 1,500 in one year's time.

Siemens (Rs 837): The price of Siemens has fallen 42 per cent from its May 2006 peak of Rs 1,262 mainly due to unwinding of leveraged positions in the F&O segment. The price is moving in a medium-term range between Rs 930 and Rs 730. Long-term investors can buy near lower boundary with a stop-loss at Rs 700. Traders can swing trade within this range.

I have purchased 20 shares of Orchid Chemical at Rs 339.50 and 50 shares of Shasun Chemicals at Rs 106.50. What is the future of these companies with respect to long term and short term. J.S. Arora, Dilip Maloo

Orchid Chemicals (Rs 169): The long-term uptrend in Orchid Chemicals has been severely damaged when the price fell from Rs 399 in April 2006 to Rs 142 in June 2006. Price can rally to Rs 250 in the next one year. But it will have difficulty rising above this level. Long-term investors can hold with a stop-loss at Rs 130.

Shasun Chemicals (Rs 70): The long-term outlook for Shasun Chemicals looks promising from a technical point of view. The price has been is a broad sideways band between Rs 60 and Rs 110 for the last two years. The price is currently near the lower boundary. Long-term investors can hold with a stop-loss at Rs 48 for a price target of Rs 100-120. Short-term investors can exit around Rs 80.

I have bought 200 shares of Bajaj Hindusthan at Rs 400 per share and 100 shares of Mahindra & Mahindra at Rs 580 per share. What is the short term/long-term scenario. P.V. Naik

Bajaj Hindusthan (Rs 358): The price of Bajaj Hindustan has shown a good recovery since hitting a low of Rs 240 on June 13. Hold with a stop-loss at Rs 300 if you are a short-term investor and with a stop-loss at Rs 230 if you are a long-term investor. The short-term target for the scrip is Rs 445.

Mahindra & Mahindra (Rs 514): The price of Mahindra and Mahindra is quite weak from a short-term viewpoint. This is in line with the performance of the rest of the auto sector stocks. The price is heading for Rs 457 in the short-term. If that level is breached, the price can fall to Rs 371. Exit now if you are a short-term trader. Re-enter later near Rs 457 or Rs 371.

Can you provide your one-year outlook on Tata Teleservices and Southern Iron & Steel. Ajay

SISCOL (Rs 17): The long-term trend in this stock continues to be up.

The price is consolidating in a wide band between Rs 32 and Rs 13 since March 2005. Hold the stock with a stop-loss at Rs 10. Price can cross Rs 34 in the long-term.

Tata Teleservices (Rs 19): The price has recovered well from the low of Rs 15.40 (June 8).

But price will face stiff resistance from Rs 22 and then at Rs 24 in the next two to three months.

Short-term traders can keep a stop-loss at Rs 18, while long-term investors can hold with a stop-loss at Rs 15.

I have bought 200 Mercator Lines at Rs 52, What is the outlook of this company from a one year point of view. Should I hold or book loss? Paresh Maru, Mumbai, Girish Tripathi, Allahabad

Mercator Lines (Rs 29): The chart of Mercator Lines is in a long-term downtrend. There is short-term support at Rs 31, where the price has presently halted.

The recovery in second half of June has been very unsatisfactory. It would be best to book loss and invest the money elsewhere.

I hold 600 shares of Vijaya Bank purchased at average price of Rs 55. I am ready to hold it for long-term (2-3 years) if stock promises decent returns. Please advise. Abhjit

Vijaya Bank (Rs 34): The price will face difficulty rising over the Rs 42- level in the short-term. You can exit near this zone. Till then hold with a stop-loss at Rs 33.

What are the prospects of Ind-Swift Labs. B. R. Kundety, Girish Tripathi