Jupiter Biosciences (Rs 176.3): Since our last review of this stock in March, the stock has reversed from a trough at Rs 119 and gained over 100 per cent.

A cautious outlook is advocated for the long-term as the stock is reversing from the upper boundary of its long-term trend channel. A move down to Rs 130 again over the next one year can not be ruled out.

The medium-term outlook is positive for the stock until it sustains above Rs 165.

A reversal from this level can make the stock rise towards its all-time high once more.

The short-term outlook for the stock is negative.

A firm close above Rs 205 is required to mitigate this bearish outlook. Else, it can slip lower to Rs 166 or Rs 155.

I am holding 300 shares of Kotak Mahindra Bank. Let me know the position of the bank in the next one year. P.A.V. Prasad

Kotak Mahindra Bank (Rs 634.8): Kotak Mahindra Bank recorded a vertical move from the March trough that resulted in doubling of its price from that level.

This move has terminated at Rs 816 and a short-term down move is currently under way.

This correction can pull the stock lower to Rs 560 in the medium-term. If the stock manages to hold above this support, it would denote strength and a possible move upwards to Rs 917 over the next one year. However, a fall below Rs 560 would mean that a more serious correction is under way that can pull the stock down to Rs 500.

I hold 100 shares of Dr. Reddy’s Lab bought at Rs 803. I also hold Noida Toll Bridge bought at Rs 32. Should I hold these shares or sell them? Jagannadam Malla

Dr. Reddy’s Lab (Rs 621.6): In our last review, we had mentioned that the stock was moving in a broad long-term range between Rs 600 and Rs 900.

The stock is now moving sideways near the lower boundary of this trading range. The series of lower peaks recorded since January is a negative sign.

However, you can hold the stock until the support at Rs 600 holds. A fall below will take the stock price to Rs 500 or Rs 530.

Any short-term rally can have trouble rising above Rs 710. Short-term investors should exit the stock if it struggles to surpass this level. Rally past Rs 710 will take the stock to Rs 775.

Noida Toll Bridge (Rs 26.6): Noida Toll Bridge is still grappling with the long-term bear market that began in May 2006.

The sideways move since March does not inspire any confidence in the prospects for the stock.

A rally beyond Rs 40 is required to signal that the intermediate-term trend has turned positive in the stock. You can exit the stock at current levels or hold with a strict stop at Rs 21.

I am holding 80 shares of Ranbaxy which were purchased for Rs 480 in 2005. Please advise whether I should exit at current levels as the stock is not giving any returns. A.S.R. Pantulu

Ranbaxy (Rs 352.6): Ranbaxy has been in a long-term bear market since 2005, the time when you purchased the stock.

However, the stock is halting above its long-term support that exists at Rs 320. Despite repeated attempts over the last two years, this support has not been breached.

So you can hold the stock with a stop at Rs 300 and hope for the resumption of the long-term up trend in the stock soon.

There would be strong resistance in the medium-term at Rs 450.

Fresh buys should be initiated only if there is a firm close above this level. We can then expect the stock to move up to the band between Rs 520 and Rs 560.

Please give your advice on HCL Technologies bought at Rs 329. Abu Mukhthar

HCL Technologies (Rs 300.4): HCL Technologies is still far from the peak of Rs 750 made during the dotcom bubble.

But the long-term down trend reversed in 2003 and the stock is attempting to move above the long-term barrier that exists between Rs 350 and Rs 360.

A firm break-out beyond this barrier will take the stock to Rs 405 or Rs 489. The long-term outlook for the stock stays positive until it trades above Rs 230. Investors with a shorter horizon can hold the stock with a stop at Rs 250.

I purchased shares of Royal Orchid Hotels at Rs 220. There is a sudden fall in the stock price. Should I hold the stock or buy more? Thiruvenkadam Raju

Royal Orchid Hotels (Rs 154.9): Buying additional quantities to average a stock as it is falling is akin to catching falling knives and should be strictly avoided.

If the stock price continues to fall, it will only increase the loss. The better solution is to book a loss on the original position.

Royal Orchid Hotels is reversing after failing to surpass its all-time high of Rs 261. The stock has immediate support at Rs 150.

If this level is breached, a fall to Rs 97 can be expected. Exit the stock if it falls below Rs 150 and consider re-entry around Rs 100.

What are the prospects of Four Soft? Aishwarya

Four Soft (Rs 45.8): Four Soft has witnessed intense volatility since September 2005, oscillating in a band between Rs 40 and Rs 100. The trend along all time-frames is down in this stock.

It could test the June 2006 low of Rs 35 in the near-term. A rally beyond Rs 56 is required to make the near-term outlook positive in this stock.

The medium-term resistance for the stock is present at Rs 71.

A rally beyond this level would take the stock to the upper band of the trading range, at Rs 100.

Short-term investors can hold the stock with a stop at Rs 40 and long-term investors can hold the stock with a deeper stop at Rs 36.

— Lokeshwarri S.K.

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