The Hindu Business Line : Query Corner

Hinduja TMT (Rs 606.6): Hinduja TMT has made a strong comeback from the low of Rs 355 hit on June 14. The stock has currently retraced 50 per cent of the fall seen since May. The targets for the short-term exist at Rs 648 and then Rs 670. If Rs 670 is crossed, the price can head towards Rs 755. Hold the stock with a stop at Rs 570.

What are the prospects of Mangalam Cement shares purchased at Rs 210. I can wait for three to six months. Sunder Arora, Omprakash Malu

Mangalam Cements (Rs 206.5): This stock has been moving sideways between Rs 190 and Rs 220 since September. Since this sideways move comes after a steep rally from the low of Rs 127, it can be called a positive base building move. Hold the stock with a stop at Rs 190. Fresh buying can also be done with the same stop. The short-term targets are Rs 236 and then Rs 265.

I am holding Celebrity Fashions at Rs 233 and Orient Info at Rs 38. Please comment on the medium to long-term prospects. Rajendran, Raja Sekhar

Celebrity Fashions (Rs 111.1): Celebrity Fashions is a recent listing, so it does not have enough history to give us clear directions. It has been moving sideways between Rs 100 and Rs 135 since August and is currently near its all-time low of Rs 116. The stock needs to rally above Rs 165 before the negative outlook will abate in this stock. Hold with a stop at Rs 98. Exit on a bounce to Rs 140 or Rs 165.

Orient Information (Rs 14): This stock has been stuck in a range between Rs 20 and Rs 70 since 2003. The price fell below the lower boundary of this range in June, which is a negative signal. A rally above Rs 34 is required to make the stock climb higher to Rs 45 or Rs 50 levels.

I hold shares of TVS Motors, what are the long-term and short-term supports and targets. Ramesh

TVS Motors (Rs 93.5): The short-term support for TVS Motors exists at Rs 92. A fall below Rs 92 will see the stock falling to Rs 79. Short-term targets for this stock are Rs 110 and then Rs 128.

The long-term trend in TVS Motors is weak. But strong long-term support exists in the area between Rs 75 and Rs 90. The stock is expected to find support in this band in the event of a deep correction. Long-term targets are Rs 136 and then Rs 146.

Please advise me, how to deal with Paramount Communications purchased by me at Rs 281 a long time back. I can wait for another year. Saraswathi

Paramount Communication (Rs 234): The chart pattern in this stock looks promising. After rallying sharply from the low of Rs 114, the chart is presently moving sideways in an upward moving channel. If the price sustains above Rs 213, it can make a dash towards Rs 291 and then Rs 338. Since you are willing to hold for the long-term, keep a stop at Rs 195. If the price falls below Rs 195, exit the stock to re-enter at lower levels around Rs 170.

I am a long-term investor. Please let me have your advise on Visaka Industries bought at Rs 177 and Mastek purchased at Rs 373. Divya

Visaka Industries (Rs 149): Visaka Industries has covered ample ground, rising 122 per cent from the low it hit in August. The stock has risen past the intermediate term resistance that exists at Rs 145. Hold the stock with a stop at Rs 138. If it sustains above this support, we can see the price rising to Rs 168 and then to Rs 198 over the next one year. The support below Rs 138 would be available at Rs 115.

Mastek (Rs 326.5): Mastek is now falling after making repeated attempts to rise over the Rs 370 barrier. This downward move has the short-term support at Rs 315. The price is trying to stabilise here. A fall below Rs 315 can see the price heading towards Rs 288 and then Rs 231.

Even though you are a long-term investor, it is advisable to exit this stock once Rs 311 is breached. The inability of the stock to get past Rs 370 in the last three months points towards a broad sideways move between Rs 250 and Rs 400 in the next one year. Re-entry can be made near the lower boundary at a later date.

I hold Nile at Rs 80 and Pudumjee Agro purchased at Rs 38. What is the future outlook for these stocks? I am willing to hold them for the long-term. Vinod Garg

Both the stocks are in a long-term down trend. But they can turn out to be great contrarian picks if the price reverses from these levels. The call has to be made in conjunction with an analysis of the companies' fundamentals.

Nile (Rs 80.3): Technically, the stock is in a strong down trend. The price needs to rally above Rs 92 to make the long-term outlook neutral. Long-term support exists at Rs 55. You can hold the stock as long as it sustains above this level.

Pudumjee Agro (Rs 30): Pudumjee Agro has long-term support at Rs 25. A fall below this level will however make the outlook extremely negative. Hold on with a stop at Rs 21.

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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