The Hindu Business Line : Query corner

Voltas (Rs 111.1): The stock slipped from a high of Rs 111 in May to touch a low of Rs 63.5 in July. The price is once more nudging this May high.

There has been a pick-up in volumes over the last four weeks, as the price is moving sideways with an upward bias in this period.

The price can continue to move sideways in the band between Rs 95 and Rs 110 in the short term.

Short-term investors can book partial profits at current levels and hold the rest with a stop at Rs 95.

Long-term investors can wait for a dip to Rs 85 levels before taking exposure. The stock's long-term target is Rs 123.

What are the short- and medium-term prospects of Patel Engineering? Hrishikesh Phadake, Sundar S, P. Vijayalakshmi

Patel Engineering (Rs 329.4): This stock is consolidating in a band between Rs 300 to Rs 350 since the middle of August. The medium-term outlook for this stock is positive, as chart patterns suggest that there can be a breakout on the upside.

The volumes over the last four months have also been encouraging. The immediate resistance is at Rs 380.

If this level is surpassed, there can be a rise to Rs 401 or Rs 451 over the next few months. Hold the stock with a stop at Rs 300.

What are the prospects of Jayshree Tea and Tata Tea? G. P. Dube, Pankaj Agarwal, Aboobacker Ziddhique, T. K. Hamza

Jayshree Tea (Rs 135.7): The stock is showing a good recovery from the low of Rs 91 hit in July. There was a surge in volumes in February and March when the price hit an all-time high of Rs 207.

The volume has petered off since. This is a negative for the stock, as sellers will emerge to curtail every rally. For the short term, the pattern is bullish.We can have a rally to Rs 160 or Rs 172, where exit is recommended. Till then, hold with a stop at Rs 126.

Tata Tea (Rs 742.7): The long-term uptrend is still intact. The price bounced off the long-term support of Rs 560 in June. The long-term targets on the upside are Rs 970 and then Rs 1,207.

Long- term investors can hold the stock with a stop at Rs 500.

However, this stock is exhibiting weakness over the medium term. The slide can halt at Rs 679 or Rs 628, which will be a good place where investors can enter this stock. Do not buy the stock below Rs 628 as, in that event, a slide to Rs 550 will be possible.

I want to know the long-term outlook of Exide Industries and Kajaria Ceramics? Syed, N.S. Kumar, Charles

Exide Industries (Rs 40.6): This stock has had a dream run since July, running up from a low of Rs 22.2 to a high of Rs 49.2 in September, gaining 121 per cent.

The spurt in prices in September has been accompanied by increase in volumes. A sideways consolidation between Rs 38 and Rs 49 will be good for the long-term trend.

The stock can then move higher past Rs 49 to Rs 59. Hold the stock with a stop at Rs 36. Fresh buying on dips can be contemplated with the same stop.

Kajaria Ceramics (Rs 60.3): This is another stock that has registered a steep rise over the last two weeks.

The chart has long-term resistance at Rs 56. But the price is currently above this level.

Investors can use this as a stop loss for holding this stock. Fresh buying can also be done with the same stop. Long-term targets for this stock are Rs 68 and then Rs 78.

Kindly suggest the short- and long-term prospects of Reliance Energy purchased at Rs 420 per share and of Reliance Natural Resources purchased at Rs 31 per share. Dany, Ravindra Singh

Reliance Energy (Rs 462.6): This stock is consolidating in a sideways band between Rs 400 and Rs 500 since July. As this sideways move comes after the stock has rallied upward from its long-term support of Rs 400, it can be construed as an accumulation phase.

Long-term investors can accumulate this stock between Rs 400 and Rs 500. Short-term targets on the upside are Rs 524 and then Rs 545.

If Rs 545 is crossed, there can be a rally to Rs 570. Investors already holding the stock can continue to do so with a stop at Rs 390.

Reliance Natural Resources (Rs 23): The stock has been moving in a band between Rs 18 and Rs 25 since June. We need to see a close above Rs 25 before the price can move higher to the next target of Rs 27.

Short-term investors can exit this stock if the price fails to rise past Rs 27.

The price would face difficulty in going past Rs 32 over the next year. Hold with a stop at Rs 19 and exit on any rally to the aforementioned levels.

I am holding 150 shares of Indiabulls at Rs 330. What is the outlook for this company? Suresh Kumar Yadav

Indiabulls (Rs 401.9): This stock was moving in an upward moving channel since 2004. The price has broken out above the upper boundary of this channel last week.

The short-term support is at Rs 420. The price breached this support on Friday. Book some profits here and hold the rest with a stop at Rs 380.

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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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