I bought Sesa Goa around Rs 366. Please provide me the prospects for this stock.

R. Parthasarathy

Sesa Goa (Rs 288.4): We have been reiterating in our previous reviews that Sesa Goa has medium-term supports at Rs 274 and Rs 225. We had also advised long-term investors in January this year to hold the stock as long as it traded above Rs 225. The stock tested this support on March 7 as it recorded the intra-day low of Rs 220 but since it closed the session at Rs 271, we will consider this level as unviolated and continue to hold it as the critical long-term support.

The stock will face resistance at Rs 350 and Rs 400 in the months ahead and investors with short- to medium-term perspective can divest part of their holding on reversal from either of these levels. Target on a weekly close above Rs 400 is Rs 494.

When you analysed NTPC in the edition dated July 11, 2010, you had written that the stock was in long-term uptrend. But since then the stock is sliding with lower tops and bottom. Do you still stick with the same view?

T. Jayakumar

NTPC (Rs 174.4): You are right in pointing out that the stock is sliding lower with lower peaks and troughs since July 2010. The stock has breached the medium-term support at Rs 180 that we had expected to be the lower boundary for the stock.

However, despite the stock trading below its medium-term support, we continue to hold the long-term trend in the stock as up since our long-term trend decider has not been breached yet. We stay with the view that the structural uptrend will be under threat only if the stock moves below Rs 150.

A reversal from the support zone between Rs 155 and Rs 165 can result in the stock price moving higher to Rs 240 and then Rs 284 over the long-term. The zone around Rs 240 will continue to act as a strong medium-term resistance for the stock.

Please let me have your opinion on Praj Industries purchased at Rs 79.

Baldev Gulati

Praj Industries (Rs 72.8): Praj Industries is in a severe long-term downtrend. The stock was decimated in the 2008 fall and the subsequent recovery has done little to improve the stock's prospects. Critical long-term resistance is in the band between Rs 120 and Rs 135. Investors should consider buying the stock only on a close above this zone. Else it will remain in traders' domain.

The medium-term trend in the stock is also down and it is incessantly sliding lower since the peak of Rs 122 formed in June 2009. It has also breached the key medium-term support at Rs 75 opening the possibility of a decline to Rs 46. Investors should divest their holdings on a close below Rs 60.

The stock needs to close above Rs 90 before investors with a short-term perspective can consider buying the stock. Subsequent targets for the medium-term are at Rs 100 and Rs 120.

Let me know your outlook on Orissa Minerals Development Company.

Mohani Devi Damani

Orissa Minerals Development Company (Rs 51,745.7): OMDC almost halved in value from the peak of Rs 92,200 recorded in November last year when it recorded the low of Rs 41,500 in February. It has been volatile in the range between Rs 42,000 and Rs 65,000 since then. Key medium-term resistances for the stock are at Rs 67,250 and Rs 73,245. Inability to move beyond these levels will drag the stock down to Rs 52,000 or Rs 42,000 again.

Conversely, a strong close above Rs 73,245 will mean that the stock is on its way to a new high above Rs 92,200. Stop-loss for investors can be at Rs 41,000.

Please let me know the medium- and long-term outlook for Idea Cellular bought at Rs 108.

Achintya Kumar Basu

Idea Cellular (Rs 70.2): In our review of Idea Cellular in December last year, we had indicated that the stock faced strong long-term resistance in the band between Rs 50 and Rs 90. We had also written that unless there was a strong close above Rs 90, the stock could vacillate in the band between Rs 50 and Rs 90. The stock has moved in line with our expectation and has been trading within this band since then.

Long-term investors can hold the stock as long as it trades above Rs 45. If the stock manages to hold above this level, it can attempt to move to Rs 82, Rs 97 or Rs 113 over the next year.

I purchased shares of Mahindra Satyam at Rs 108. Please let me know the medium- and long-term outlook on this share.

Deepak, R.M. Kumarappan

Mahindra Satyam (Rs 89.8): Mahindra Satyam is sliding lower gently since September 2009 peak of Rs 128.3. This long-term correction has, however, not yet breached the key support at Rs 57. Investors with a long-term horizon should hold this stock only as long as it trades above this level. Breach of this support can pull the stock down to the 2009 trough of Rs 34 or even Rs 11.

Key resistances for the next few months are at Rs 100 and then at Rs 128. Investors with short- to medium-term horizon should divest their holding on inability to move beyond Rs 100. Fresh investment with long-term perspective should be considered only on a strong weekly close above Rs 128.

Please let me know the future prospect of Jain Irrigation bought at Rs 190 and K S Oils bought at Rs 25.

Fauzia Meherally

Jain Irrigation Systems (Rs 165.5): This stock hit a life-time high of Rs 264 in August last year and is slipping and sliding ever since. Critical support for the stock is at Rs 155 that coincides with the peaks formed in November 2007 and March 2008. It also occurs at 50 per cent retracement of the entire up move from December 2008 to August 2010.

The stock is currently attempting to stabilise above this level, Rs 155. Penetration of this buttress can pull the stock down to Rs 130. Long-term investors can hold the stock as long as it trades above Rs 130. Medium-term resistances would be at Rs 196 and Rs 220.

K S Oils (Rs 26.2): In our review of this stock in January we had advised investors to divest their holding on a decline below Rs 38, since that would indicate a possible decline below Rs 10.

The stock declined below this support in February and is currently sliding very sharply. Next support is at Rs 20. But the stock could head lower than that. It would be best for investors to switch out of the stock at this point.

I am holding Tilaknagar Industries purchased at Rs 55. What is the outlook for the company?

Suresh Kumar Yadav

Tilaknagar Industries (Rs 43.9): Tilaknagar Industries has strong long-term support around Rs 50. The stock breached this level recently.

Next support that investors can watch out for is around Rs 42. If this level is breached, decline to Rs 35 becomes possible. Investors should therefore divest their holding on decline below Rs 42.

Key medium-term resistance are at Rs 75 and Rs 90.

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