The Hindu Business Line : Question & Answer

Bongaigaon Refinery (Rs 48): Long-term support for the stock exists at Rs 43. Hold with a stop at Rs 38 if you are a long-term investor. Short-term investors can exit on a spike to Rs 50 or Rs 55.

Xpro (Rs 28.50): The chart is not showing any sign of strength, as the low formed at Rs 26.65 on June 14 has not been sustained. Exit if there is a rally to Rs 38 or Rs 42 over the next few months. Till then hold with a stop-loss at Rs 25.

What are the prospects for D Link and Balaji Telefilms in the next one-year period? Can one can buy it at this rate? Raghunathan

D Link India (Rs 80): The long-term trend is bearish. But, some signs of bottoming out are evident on the weekly charts. You can buy for trading purpose with a stop-loss at Rs 60 for a one-year target of Rs 106 and then Rs 130.

Balaji Telefilms (Rs 109): The price has fallen 50 per cent from the peak of Rs 196.95 attained in March.

Any rally will see fresh supply coming in. So the price will have difficulty rising above Rs 120 in the next few months. Buy on a strong breakout above Rs 120 for a target of Rs 135 and then Rs 158.

I have 100 shares of Lokesh Machines bought at Rs 235 and 20 shares of Jet Airways at Rs 920 bought just before the big correction of May 2006.What should I do: book huge losses or average out? Savita Sharma, Panchkula

Lokesh Machines (Rs 118): Averaging out is never recommended especially when the stock has corrected very severely downwards.

The price of Lokesh Machines has fallen sharply since the high of Rs 280 hit in May to Rs 99.70 a few days ago. There is a vulnerable short-term low formed at Rs 100.

Price will face stiff resistance at Rs 136 and then at Rs 144 over the next few months. Hold with a stop-loss at Rs 90 and exit in any rally.

Jet Airways (Rs 513): The price has made a short-term low at Rs 475 some days ago. Hold the stock with a stop-loss at Rs 470.

Any rally will face resistance at Rs 670 and then from Rs 780. Exit at these levels if the price struggles to go over them.

I have bought 100 shares of Indo Tech Transformers at Rs 191and 300 shares of Coral India at Rs 27. What are the prospects of these companies? Captain Jeyaraj

Indo Tech Transformers (Rs 143): The chart has made an intermediate-term low at Rs 118 in early June. Since then, the price has been moving sideways in a band.

A higher bottom has been formed at Rs 129.50 a few days ago. So the short-term outlook is positive.

The price has the target of Rs 170 and then Rs 202 in the next three to six months. Hold with a stop-loss at Rs 110.

Coral India (Rs 16.70): The price of Coral India made a vertical climb, moving from circuit to circuit as it moved from a low of Rs 10.70 to Rs 54.10 in early May.

The fall from this high has been equally steep and it has been accompanied by low volumes.

The price will have difficulty moving above Rs 25 in the next few months. Exit on a spike to Rs 20 or Rs 23. Till then hold with a stop-loss at Rs 12.

I am holding the following shares: Dawn Mills at Rs 13,950 per share, Syndicate Bank at Rs 100 per share and Reliance Communications at Rs 346. Kindly advise if there is any chance of any of these getting back near to their old levels and if not at what price I should exit.

Dawn Mills (Rs 6,152): The chart has long-tem support at Rs 5,416 where the price has halted at present. Any rally will face resistance at Rs 7,428 and then from Rs 8,500. Exit if there is a spike to these levels.Till then, hold with a stop-loss at Rs 5,000.

Syndicate Bank (Rs 65): The price has halted above the important long-term support of Rs 45. A sustainable rally is possible from here that takes the price to Rs 69 or Rs 77.

The Rs 77 resistance needs to be crossed if the price has to rise to Rs 100 again. Hold the stock with a stop-loss at Rs 50.

Reliance Communications (Rs 258): The chart has seen good strength in the bounce back witnessed since the low of Rs 186.16 formed in June.

The sequence of higher peaks and troughs since this low is a positive sign. The short-term resistance is at Rs 275 and then at Rs 286. Exit the stock if the price has difficulty rising above Rs 286. This level needs to be crossed strongly for the price to re-gain the previous high around Rs 348.

I have 150 shares of BSEL Infra bought at Rs 82. It was doing well for quite sometime and then went down sharply. Should I continue to hold this stock? Will it be good to average it out? Should I exit at any spike? What is the prospect of this stock in next three months? Can you advise similarly for Adlabs bought at Rs 385? Senthil

BSEL Infrastructure (Rs 38.55): The price has tumbled steeply from its mid-May highs. Price can rise to Rs 48 or Rs 51 in the next three months.

Exit this stock if the price struggles to rise above this level. The stop-loss till then can be at Rs 30.

Adlabs (Rs 232): If you are a long-term investor, you can keep a stop-loss at Rs 170. For short-term traders, the stop loss should be at Rs 200.

The price can move up to Rs 275 and then Rs 300 in the short term. The Rs 300-level needs to be strongly breached for the price to make any headway towards its previous high.

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, Chennai 600002.

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

Lokeshwarri S.K.

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