The Hindu Business Line : Query Corner

The long-term trend is negative. Any rally will face resistance at Rs 75. Exit at this level if the price fails to overcome this resistance. If the price rises past Rs 75, then it can attain Rs 90. Hold with a stop-loss at Rs 50.

Praj Industries (Rs 163.7): The long-term outlook looks promising. Hold with a stop-loss at Rs 138. The stock has a near-term target of Rs 194 and Rs 210. But in the long-term, it can rally to Rs 247 or Rs 328.

Will Gammon India reach/cross Rs 400? Should it be held for one year? Shailesh Malvankar

Gammon India (Rs 352.1): The stock has been pummelled since the March high of Rs 587 and reached a low of Rs 271 in July. A rebound is currently on in this stock.

If the price sustains above Rs 300 over the next two months, we can hope for the price to get to Rs 430-450 levels over the next one year. Hold the stock with a stop-loss at Rs 260.

I bought Biocon & Gufic Bio. Please explain their prospects both in short and long term. Reddy DSS

Biocon (Rs 381.8): The stock will face resistance at Rs 400 in the short-term. If this level is surpassed, there can be a rise to Rs 435. We do not have enough data to derive the long-term outlook for Biocon. Long-term investors can hold the stock with a stop-loss at Rs 280.

Gufic Biosciences (Rs 10.9): The stock is near its all-time low price of Rs 7.7. There can be a rally to Rs 13 or Rs 15.5 levels over the next few months. Exit at either of these levels. Till then, hold with a stop-loss at Rs 7.5.

What is your advice regarding Andhra Bank? Srinivas Ch., Darla Raja Rao, Jagan B. Rao

Andhra Bank (Rs 85.4): The price has been moving up smartly since the low of Rs 56 hit in July.

There are signs of slight weakness for the short term. There can be a dip to Rs 75 over the next few days.

But the outlook for the next few months stays positive. The target over the medium-term is at Rs 98 and then Rs 109. Hold the stock with a stop-loss at Rs 70.

Please give your view on Teledata Informatics. Should I hold, sell or switch? Rishi Aggarwal, K. Manoharan, Mahesh Gidwani.

Teledata Informatics (Rs 10.1): This chart has been in a downward trend since December 2004 when it touched a high of Rs 63.30.

The downtrend has aggravated since May 2005. Any short-term recovery will face resistance at Rs 15 and then at Rs 18. Exit if you get a rally to these levels. Till then, hold with a stop-loss at Rs 9.

What is the short-term outlook for BHEL and Wipro bought at Rs 2,350 and Rs 540? B. Sivakumar, Ahmedabad.

BHEL (Rs 2,249.9): The daily chart is showing weakness. But the weekly chart is still looking bullish.

There can be a dip to Rs 2,120 or Rs 2,000 in the short tem. Hold with a stop-loss at Rs 2,000. Immediate upward target for the short-term target is Rs 2,500.

Wipro (Rs 511.5): The price has halted at an important resistance level of Rs 516.

This level needs to be convincingly crossed if the price has to proceed towards Rs 550 or Rs 580. If you are a short-term trader, then hold the stock with a stop-loss at Rs 485.

I have purchased shares of Sterlite Optical at Rs 135 and Exide at Rs 259. Please let me know what the prospects of these shares are. Rama Gopal K.V.

Sterlite Optical (Rs 180.7): This stock is gaining momentum over the last 10 trading sessions.

This rally from Rs 103 to Rs 162 has been accompanied by good volumes, which is a good sign.

If you are a short-term trader, place a trailing stop-loss at Rs 140 and hold the stock. The subsequent targets are Rs 195, Rs 208 and then Rs 247.

Exide Industries (Rs 308.5): This is one of the few mid-cap stocks that have surpassed their May 2006 high. Short-term investors can hold with a stop-loss at Rs 260.

Long-term investors can keep a deeper stop-loss at Rs 225. This stock appears to be in a hurry to hit the Rs 500 level.

What are the prospects of Jagran Prakashan? Do you recommend a buy over the short-term? Subur Basha Shaikh

Jagran Prakashan (Rs 306.2): The short-term outlook is positive.

Price is consolidating between Rs 295 and Rs 325. The upward targets on a breakout are Rs 380 and then Rs 450. Buy with a stop-loss at Rs 280.

What are the prospects of Madhucon Projects purchased at Rs 410 and Gangotri Textiles purchased at Rs 44? Dr J. K. Bhalla

Madhucon Projects (Rs 221.7): The stock has lost over 50 per cent since the high of Rs 437 hit in March.

Price would face stiff resistance from Rs 270 over the next few months. If Rs 270 is crossed, there can be a rally to Rs 335. Hold with a stop-loss at Rs 200 and exit at either of the targets mentioned above.

Gangotri Textiles (Rs 30.8): This stock is in a vicious downtrend. Long-term support exists at Rs 18. Price can rally to Rs 36 or Rs 43 where you can exit. Till then hold with a stop-loss at Rs 17.

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