Kindly advise on the future prospects of Dena Bank bought at Rs 78 and Bank of India at Rs 475. Please give short- and medium-term targets.

V. Karthik,

J.H. Krishnamurthy

Dena Bank (Rs 94.2): The stock found support at around Rs 48 in early January 2012 and started to move upwards. Since then, Dena Bank stock has been on a medium-term uptrend. The stock has almost doubled from its January low. After retracing 50 per cent of its prior downtrend from November 2010 peak of Rs 151 to January low at around Rs 48, the stock is now facing resistance at Rs 100. This is a long-term significant resistance level for the stock and, therefore, it would be little difficult to breach it in the first attempt. Failure to move above Rs 100 will be cue for short-term investors to take partial profits off the table.

Those with a medium-term perspective can prolong their holdings with stop-loss at Rs 70. Key support at Rs 85, Rs 80 and Rs 72 can cushion the stock on declines. Strong breakthrough of Rs 100 will give a medium-term price target of Rs 110 and Rs 122.

Bank of India (Rs 380.3): Bank of India also bottomed out in early January 2012 at Rs 261 and has been on a medium-term uptrend. But, following a 38.2 per cent fibonacci retracement level of the previous downtrend, the stock is currently testing important long-term resistance band between Rs 390 and Rs 400. Inability to move above this resistance zone will pull the stock down to Rs 365 or to Rs 350 in the short term. Next support is at Rs 330.

Both short- and medium-term trends are up for the stock. Short-term trend remains positive as long as the stock trades above Rs 350; medium-term trend remains positive as long as it trades above Rs 310.

Investors with medium-term perspective can consider holding the stock with stop-loss at Rs 300. An emphatic penetration of the aforementioned resistance band will pave way for a rally to Rs 430 and then to Rs 460 in the medium-term.

Please give your views on India Cements and OIL India for short- and medium-term horizon.

D. Jayaprakash

India Cements (Rs 103.7): After consistently taking support in the zone between Rs 62 and Rs 65 from August 2011, the stock started trending higher in early January this year. The stock accelerated sharply in early February breaking through a significant long-term resistance at Rs 88. However, next important resistance zone between Rs 105 and Rs 110 halted the stock's rally last week.

Short- as well as medium-term trends are up for the stock. A decline below Rs 95 will mar the short-term bullish view and pull the stock down to Rs 88.

Only a decline below Rs 80 will mitigate the medium-term positive outlook and drag the stock down to Rs 75 or Rs 70. Strong jump above Rs 110 will reinforce the bullish momentum and take the stock higher to Rs 122 or Rs 130 in the medium-term.

OIL India (Rs 1,316.8): OIL India bounced up after taking support from its long-term base level at around Rs 1,100 in early January 2012. Since then, the stock has been on a medium-term uptrend. However, the stock's long-term resistance at around Rs 1,350 halted its rally last week. It can consolidate sideways between Rs 1,250 and Rs 1,350 in the short-term, before moving northwards.

A conclusive up move above Rs 1,350 will lift the stock higher to Rs 1,400 and to Rs 1,440 in the medium-term.

Nevertheless, slump below Rs 1,250 will abate the bullish momentum and pull the stock down to Rs 1,200. Further decline below Rs 1,200 will mitigate the stock's medium-term uptrend and drag it down to Rs 1,150 or even to Rs 1,100 in the same time frame.

What is the short-term view on Nucleus Software and LKP Finance?

RNB Rao

Nucleus Software Exports (Rs 70.1): Ever since peaking out in April 2010 at a high of Rs 177, Nucleus Software has been on a long-term downtrend. Within this downtrend, the stock has been on an intermediate-term sideways consolidation in a broad range between Rs 60 and Rs 77 from August 2011.

After testing the upper boundary of this range in the previous week, the stock started to reverse lower. In the short-term, its decline can continue and reach the immediate support at Rs 65 and then its lower boundary at Rs 60. An emphatic tumble below Rs 60 will strengthen the stock's long-term downtrend and pull it to Rs 52 or to Rs 43. On the other hand, a strong up move above Rs 77 will push the stock higher to Rs 85 to Rs 90 band. Next important resistance is at Rs 100.

LKP Finance (Rs 71.3): The stock has been on a long-term downtrend from its October 2010 peak of Rs 170. However, the stock found support at around Rs 65 in November 2011 and started moving sideways since then. A strong breakthrough of the stock's long-term resistance zone between Rs 78 and Rs 81 will provide bullish short-term outlook. The stock can rally to Rs 90 and then to Rs 98 in short- to medium-term.

Conversely, a decline below Rs 65 will pull the counter down to Rs 57 and to Rs 50, which is a significant long-term support level.

Kindly advise me on the long-term outlook for Zandu Realty. Can I enter this stock at current level?

J. Senthan

Zandu Realty (Rs 1,687.1): Since peaking out from September 2009 high of Rs 9,280, the stock has been on a long-term downtrend. It is in bears' grip. While the stock did make some sharp corrective rallies, it failed to sustain thereafter and reinforced its downtrend. As the stock is very volatile and trades in low volume, we don't recommend buying this stock at any levels.

After recording a multi-year low at Rs 1,199 on December 30, 2011, Zandu Realty began to move higher. It has been on a modest short-term uptrend. The stock is facing significant long-term resistance at Rs 1,900. A decisive penetration of Rs 1,900 will take the stock higher to Rs 2,250. We don't envisage a move above Rs 2,800 in the long-term. A downward reversal from Rs 1,900 can drag the stock down to Rs 1,400 and to Rs 1,250 in the medium-term. A fall below the support band between Rs 1,200 and Rs 1,250 will pull the stock lower to Rs 1,000 and to Rs 900 in the long-term.

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