The Hindu Business Line : Query corner

Bharat Bijlee (Rs 975.3): Bharat Bijlee is not showing sufficient strength in the recovery witnessed since June 2006. You can enter now if you are a short-term investor with a short-term target of Rs 1,100.

However, it would be best to wait for a dip and buy between Rs 800 and Rs 850 with a stop at Rs 780.

Bongaigaon Refineries (Rs 62.3):

The price has had a sudden spurt last week along with the rest of the companies in the oil sector.

This rally can fizzle out around Rs 65. Buy on a close above Rs 68. The price can then rise to Rs 82 - Rs 85 levels.

What is the future of Gujarat NRE Coke? S.K. Panigrahi, Ajith Thottupurkal, J.S. Ramesh Babu, J.D. Singhal

Gujarat NRE Coke (Rs. 65.7):

This stock has been in a downtrend since hitting a high of Rs 170 in September 2005. The price has taken support at its long-term average at Rs 50. Falling volumes have accompanied the fall in price, which is not a good sign.

Price can rally to Rs 75 and beyond that to Rs 95 in the next one year. Hold with a stop at Rs 45.

What are the short and medium term prospects of Hexaware Technologies purchased at Rs 119? R. Nagarajan

Hexaware Technologies (Rs 163):

The long-term structural bull signal is still intact in Hexaware. The price is heading towards its 2006 peak of Rs 177. The target beyond Rs 177 falls at Rs 194. Hold the stock with a stop at Rs 140 if you are a long-term investor. If you invest for a short term, then book profit now and go long again once the price crosses Rs 180.

What is your outlook on Areva T&D? Sivaiah, Wanaparthy, K.R. Ganesan

Areva T&D (Rs 693.2): The price has rallied strongly since the low of Rs 389 hit on 15th June 2006.

The price is currently halting at exactly 61.8 per cent retracement of the fall from its March 2006 highs.

The Rs 750 level needs to be convincingly crossed for the price to make a new all-time high.

Hold with a stop at Rs 600 if you are a short-term investor. Keep a stop at Rs 450 if you are a long-term investor.

Kindly let me know the prospects of Shri Dinesh Mills purchased at Rs 850 and Winsom textiles purchased at Rs 25. Dinesh Pai

Shri Dinesh Mills (Rs 928.4):

This stock has long-term support at Rs 640. If you are a long-term investor, then you can hold with a stop at Rs 620.

Price can rally to Rs 980 - 1,000 levels in the short term. This level needs to be crossed strongly for the price to proceed towards Rs 1,100 or Rs 1,200.

Winsome Textiles (Rs 33.5): Hold with a stop at Rs 30. Next resistance level for the price falls at Rs 38 and then Rs 40.

Please advice on the outlook of REI Agro. Suresh Kumar Yadav, Himanshu Pandit, V. Sreedhar

REI Agro (Rs 120.4):

The stock is showing good momentum since the low of Rs 58 formed on 13th June. The price can rise to the Rs 150 to Rs 160 zone in the next few months. Exit at these levels if the price has difficulty crossing this zone. Till then, hold with a stop at Rs 90.

I have 500 shares of Kotak Bank at Rs 289. Please advice me on this scrip. I am a long-term investor? Mukesh Prasad

Kotak Bank (Rs 332.9): The long term up trend is still intact in this chart. The price has been moving up strongly since the low of Rs 210 formed on 9th June.

The immediate resistance for the price is at Rs 328 where the price has halted now. Since you are a long-term investor, keep a stop at Rs 240 and try to exit close to Rs 400.

What is the short term and medium term outlook of ITC? Nabendu, Ramani, Mrs Sweta Chakravorty

ITC (Rs 180): The intermediate term outlook for ITC is positive. The intermediate term low formed at Rs 140 on 9th June is also a long-term support for this stock.

The price has the potential to rise to Rs 209 or Rs 239 in the next 3 to 6 months.

The short-term outlook is neutral as the price is consolidating sideways between Rs 165 and Rs 185. Hold the stock with a stop at Rs 158.

I hold 4,000 shares of Aftek Infosys at Rs 70 per share. I find that Aftek is forming an ascending triangle and if it goes above Rs 62 then it can give a target of Rs 72. Could you please give your view for the short term as also for 1-year horizon? Kamakshy, G.S. Suresh

Aftek Infosys (Rs 63.8): Ascending triangle patterns are bullish continuation patterns that normally have relevance only in an up trend. They do not occur as reversal patterns. The volume action too does not conform to this pattern.

The price has immediate resistance at Rs 65. Breakout beyond Rs 65 can take the price to Rs 85 levels.

Hold with a stop at Rs 54 if you are a short-term investor. Over a one-year horizon, the price can rise to Rs 85 and beyond that to Rs 112.

I have Pricol and BEML in my portfolio. What do you think are their prospects? Will they ever regain their earlier glory? Bharati Shroff

It is always seen that, towards the end of a bull phase, stocks rise much beyond their intrinsic values.

It is mainly due to paucity of supply. Stocks that run up beyond their true valuation, take many years to attain the peaks they hit at market tops.

You can hold on to the stocks if you believe in their fundamentals. If not, then switch to some other stock.

Pricol (Rs 40.7):

The price of Pricol has been rallying since the mid-July low of Rs 30. But the price has already hit its short-term resistance at Rs 42.

Target beyond Rs 42 is at Rs 48. You can exit at these levels if price has trouble rising over Rs 42. Long-term investors can hold with a stop at Rs 27.

BEML (Rs 943.8):

The slide in BEML has halted at the long-term support of Rs 720.

Price can consolidate between Rs 750 and Rs 1,050 for a few months before a breakout happens.

Hold with a stop at Rs 700. You can buy more in case of a dip to Rs 750 levels with the same stop loss.

How does Dhampur Sugar look? Kothare, V. Sreedhar

Dhampur Sugar (Rs 108.3):

The chart of Dhampur Sugar is in a vicious down trend since the top of Rs 272 hit in March 2006. The price has not been able to make the best of the rally witnessed in June and July, 06. A close above Rs 130 is required before fresh positions can be contemplated. Investors can hold this stock with a stop at Rs 80.

Please advise regarding the medium and long-term prospects of Essar Oil? Selvam Raj, Chinna Reddenna, Rakesh Kumar

Essar Oil (Rs 48.6):

The price of Essar Oil is showing good momentum for the short term.

The price has the short-term target of Rs 52. Exit there if you are a short-term investor. Long-term investor can hold with a stop at Rs 35. Long-term targets are Rs 56 and then Rs 62.

I have 200 shares of Hotel Leela Venture at Rs 255 per share and 200 shares of Dwarikesh Sugar at Rs 133 per share. What is the outlook of these stocks? Deepak Vohra

Dwarikesh Sugar (Rs 131.5):The price is consolidating between Rs 140 and Rs 98 since June 2006.

A breakout above Rs 150 is required to propel the price to Rs 180 levels. Hold with a stop at Rs 110.

Hotel Leela Venture (Rs 289.0): The price is moving up strongly in the short term. The immediate resistance for the price is at between Rs 310 and Rs 325.

Target over the next one year is Rs 365. Since you seem to be a long-term investor, hold the stock with a stop at Rs 200. You can accumulate this stock if the price dips to the Rs 200 to Rs 250 zone.

I am holding 100 shares of NTPC, which I bought at Rs 142 per share. I would like to know the target of this company and in what time frame can I expect some gains from this stock? Shanti Kuber