The Hindu Business Line : Query Corner

Raymond (Rs 374.1): The long-term support for Raymond exists at Rs 290. The stock has reversed from this level in June 2006 but it could not get past the intermediate term resistance that exists at Rs 500. Raymond has entered a long-term consolidation phase that can make the stock move in a band between Rs 300 and Rs 500 for few more months. Since you are a long-term investor, hold the stock with a stop at Rs 280. A weekly close above Rs 500 is required to herald the resumption of the long-term up trend.

I would be grateful if you can let me know the technical outlook of Patni Computers purchased at Rs 474 on January 31. N. Gopalan

Patni Computers (Rs 437.9): Patni Computers took a severe knock in the first half of 2006, losing 50 per cent from the January 2006 high. The stock has wiped out all the losses in the rally that ensued post-July 2006. But the Rs 500-level continues to be a difficult hurdle to cross for this stock. The short-term support exists at Rs 375. A recovery above Rs 375 will mean that the stock can rally once more to Rs 500 and then to Rs 542. Hold the stock with a stop at Rs 370. Fall below Rs 375 can pull the price further down to Rs 345.

What is the long-term outlook for Aditya Birla Nuvo? Ravinder Singh

Aditya Birla Nuvo (Rs 1,310): Aditya Birla Nuvo is in an indomitable frame currently, ruling 55 per cent above its May 2006 peak. The long-term outlook will stay positive till the stock sustains above Rs 1,150. Investors can utilise dips to this level to initiate fresh positions in this stock. The stock has the potential to rise to Rs 1,386 and beyond that to Rs 1,939 over the long term.

However, a fall below Rs 1,150 can drag the stock price lower to Rs 1,050 or Rs 950.

What is your outlook on CMC purchased at Rs 1,180? Subur Basha Sheikh, Rajashekhar

CMC (Rs 1146.4): CMC had a vertical rise from the low of Rs 631 in January 2007, which saw the price doubling in six trading sessions. The stock has been consolidating in a range between Rs 1,050 to Rs 1,300 since then.

There is strong short-term support at Rs 1,055. If the stock sustains above this support, there can be another spurt that can take the stock price higher to Rs 1,320 or Rs 1,479. Hold the stock with a stop at Rs 1,030. Fresh purchases can also be made with the same stop.

What are the prospects of GNFC? I bought the shares a long time back at Rs 120 a share. But the said stock hovers between Rs 95 and Rs 111. Please advice me whether I should hold or sell. C. M. Patnaik

GNFC (Rs 103.7): You are right in pointing out that this stock has under performed over the last six months. It has managed to recover only 50 per cent of the losses that it suffered in the May 2006 crash.

The important resistance for the next six months would be Rs 120. The stock is expected to have difficulty rising above this mark and continue to oscillate between Rs 90 and Rs 120.

Exit at current levels and re-enter the stock only if it closes beyond Rs 120. It can then rally to Rs 145.

What is the technical outlook for Diamond Cables? Joginder Singh Yadav, Ajay Sharma, Anita

Diamond Cables (Rs 152.3): The up trend that began from July 2006 in Diamond Cables has not been dented too badly by the recent dip. The short-term outlook for diamond cables stays positive as long as the stock stays above Rs 132.

The medium-term outlook will turn negative only if the stock price falls below Rs 125. Investors can hold the stock with a stop at Rs 123. If the stock manages to sustain above Rs 140, it can rally to Rs 183 or Rs 209 over the next three months.

What are the medium and short-term targets of BPCL and Arvind Mills? Jayprakash Dhandayutham

BPCL (Rs 328.4): The long-term trend in BPCL is down. The succession of lower peaks and troughs and the inability on part of the stock to rise past its intermediate term resistance at Rs 425 underline this fact.

A rally past Rs 425 is required to make the long-term outlook positive for this stock. Short-term resistance levels are Rs 352 and then Rs 374.

Strong long-term support exists around Rs 300 for BPCL. The stock can recover from this level again. However, a fall below Rs 300 can take the stock price lower to Rs 250. Hold the stock with a stop at Rs 285.

Arvind Mills (Rs 57.1): Arvind Mills is in a severe down trend. A rally above Rs 85 is required to make the medium-term outlook positive. Fresh investments may be made in this stock only if there is a weekly close above Rs 85.

Short-term resistance for this stock would be at Rs 63 and then at Rs 73. Hold with a stop at Rs 46. Breach of this level can take the stock price to Rs 41.5.

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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