The Hindu Business Line : Query Corner

Ind Swift (Rs 38): Ind Swift Labs is in a long-term down trend since September 2005. The stock price declined more than 70 per cent in the period between September 2005 and November 2007.

Though the stock has moved up over the last two months, the long-term resistance around Rs 50 could be a difficult barrier to tide over. The stock has reversed sharply from this level recently and is moving down. The immediate support exists at Rs 35. But there is a strong possibility of the stock returning to its long-term support zone around Rs 25.

Those holding the stock can divest part of their holdings at current levels and hold on to the rest with a stop at Rs 32.

Simplex Castings (Rs 93.2): Simplex Castings is currently in a strong up trend. The near-term outlook for the stock will stay positive as long as it holds above Rs 90. A sideways consolidation between Rs 90 and Rs 110 will pave the way for a move higher to Rs 117 or Rs 128.

Short-term investors can hold the stock with a stop at Rs 85. The long-term up trend will be under threat only if the stock dips below Rs 65.

I am holding shares of Accel Frontline bought at Rs 156. Kindly advise whether I should hold this stock or sell it. T.V. Sathish

Accel Frontline (Rs 119.0): This stock recorded an extremely sharp run-up between November 28 and December 13, 2007. The price moved up from Rs 73 to Rs 162 in this period. Accel Frontline is currently correcting this sharp run-up.

The immediate support for the stock is present at Rs 113 and the next support at Rs 100. You can hold on to the shares as long as it remains above Rs 100.

A reversal from this support can make the stock rally to Rs 125 or Rs 140, where you can exit your holding.

I have purchased 1,000 shares of LML at Rs 21.50.Please advice on the technical outlook for the stock. Sanjeev Agarwal, Jayakumar

LML (Rs 21.9): It is obvious that this stock is going to be volatile in the days to come. The recent up-move from Rs 12 to Rs 28 seems unsustainable since the stock moved up from one circuit filter to the next while moving higher. The move down from the Rs 28 peak has been equally swift. There are short-term supports at Rs 20 and then Rs 18. But a fall to the long-term support band between Rs 10 and Rs 15 is a distinct possibility. We recommend a switch from this stock.

I request you to outline the prospects of Omax Auto and Om Metals, and let me know if these two scrips are worth holding for another two years. Harish

Omax Autos (Rs 72.5): Omax Autos has been in a long-term bear market since January 2006. The stock is currently trying to stabilise itself around the long-term support band between Rs 60 and Rs 70.

The stock could reverse from this zone and go on to regain its former peak at Rs 167. Since you have a two-year perspective, hold the stock as long as it holds above Rs 60.

The intermediate resistances would be encountered at Rs 102 and then at Rs 130. Investors with a shorter horizon can divest their holdings at either of these levels.

Om Metals Infraprojects (Rs 93.5): Om Metals resumed its long-term up-move after a protracted sideways movement between July 2006 and October 2007. One leg of this up-move could have been completed at the recent peak at Rs 109.

However, the long-term outlook for the stock will stay positive as long as the stock sustains above Rs 65. You can hold the stock as long as this support holds. Investors with a shorter horizon can exit the stock once it moves below Rs 80.

Let me know the future prospect of DCB for a short-term. Tarina Pinto

Development Credit Bank (Rs 141.6): The stock is in a steady up trend since it’s listing in October 2006. This move can be enclosed within an upward moving long-term trend channel. DCB is currently struggling to move above the higher boundary of this trend channel that is positioned at Rs 163.

Short-term support for the stock is present at Rs 128. The near-term outlook will turn negative only when the stock breaches this level. The next support for the stock would be Rs 120.

The near-term outlook for the stock is weak and it can move lower to Rs 135 or Rs 128.

Reversal from either of these levels will ensure that DCB moves beyond its recent peak to Rs 180 over the next three months.

Can an investor have more than one demat account on his name? Is it required that more than one demat account can be opened with different deposit participants only. And can we apply through more than one application for one Company’s IPO with different demat accounts open with same name? Ravindra Singh

Investors are allowed to open more than one demat or dematerialised account with the same depository participant (DP) or with different DPs.

As long as the accounts are not in fictitious names investors are allowed to open and operate multiple demat accounts in the same manner in which multiple bank accounts are allowed. But applying for an initial public offer by a single entity through his numerous demat accounts would not be feasible.

I would like to know your opinion on Pyramid Saimira purchased at Rs 495 and Hind Industries bought at Rs 41. Could you please let me know when and at what price I should sell them? Hariram

Pyramid Saimira (Rs 451.4): Pyramid Saimira broke-out of a long-drawn consolidation phase in December 2007. But one leg move of the up-move was completed at Rs 551 and the stock is currently in a short-term correction.

This phase can take the stock lower towards Rs 440 or Rs 400. Investors with a short-term time frame can hold the stock with a stop at Rs 435. Others can hold the stock with a deeper stop at Rs 370.

Hind Industries (Rs 32.5): The speed, with which this stock fell from the peak at Rs 50, indicates that the entire gains made since the last week of December are going to be surrendered.

You ought to exit the stock at market price as the fall could halt at Rs 27 or even Rs 23.

I am holding shares of Tinplate Company of India purchased at Rs 58. Kindly suggest whether I should hold the stock or sell it. Lloyd

Tinplate Company of India (Rs 66.2): This stock is currently reversing from the intermediate resistance at Rs 82. The fact that the stock was unable to surpass this resistance indicates that the long-term down trend that commenced from April 2006 continues to be in force. Resumption of this down-move can drag the stock lower towards the long-term support at Rs 43.

If your investment perspective is short-term, you can book profits at current levels. But long-term investors can hold the stock with a stop at Rs 40.

— Lokeshwarri S.K.

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