Please let me know the technical prospects of Adani Enterprises bought at Rs 374.

A. Pradeep Kumar

Adani Enterprises (Rs 288.3): Adani Enterprises went into tailspin between July 2011 and January 2012. The stock dropped from Rs 765 to Rs 261 in this period. The recovery in January from this trough could not get past the first medium-term resistance at Rs 456 and the stock is pinning out of control again.

Immediate support is at the recent trough at Rs 261. This also coincides with the trough formed in March 2008. If this low is breached, next halt can be at Rs 220. Further fall will drag it to the March 2009 trough at Rs 120.

Investors should, therefore, hold the stock only as long as it trades above Rs 261. Resistances for the months ahead would be at Rs 456, Rs 515 or Rs 574. Long-term view will turn positive only on a move above Rs 574. Investors with a smaller investment horizon should, therefore, divest their holdings if the stock struggles to get past these resistances.

I bought Great Offshore shares at Rs 84 and OnMobile Global shares at Rs 78. Advise me the technical aspects of these shares.

P. Subramanian

Great Offshore (Rs 99.7): The Great Offshore is sinking down a bottomless hole. The stock moved below its March 2009 trough at Rs 204 last August and is currently ruling 50 per cent below this level. Needless to add, the long-term trend in the stock is currently down. The stock needs to record an emphatic close above Rs 200 to signal that it is on the way to recovery.

Short-term resistances are at Rs 150 and Rs 210. Fresh purchases should be made only on move above the second resistance. Investors with short-term perspective can divest their holding at either of these levels.

Medium-term resistances are at Rs 295 and Rs 380. Inability to move past Rs 380 will result in the stock meandering between Rs 100 and Rs 400 for couple of years more.

Stop-loss for investors ought to be at Rs 65. It is hard to pinpoint the next halt once this support breaks.

OnMobile Global (Rs 61.6): The chart of OnMobile Global is not pretty sight to behold. The stock is in a long-term downtrend with successively lower peaks and troughs since the peak at Rs 341 formed in July 2009. It formed the trough of Rs 54 in August 2011 and the stock is currently attempting to hold above this level.

That said, the rally from this low is not convincing enough and the stock appears headed towards its all-time low again. Investors should exit the stock once it declines below this level since there are no further supports on the chart.

Long-term trend will turn positive only once the stock closes above Rs 200.

I would like to invest in SREI Infrastructure and Sterlite Technologies at current levels. Discuss the technicals of these stocks.

G.B. Rajeswar Reddy

SREI Infrastructure Finance (Rs 28.2): Long-term trend in SREI Infra is down since January 2008. The rally in 2009 could not help the stock retrace even 38.2 per cent of its previous decline and it is once more in a serious slide since November 2010 peak at Rs 78. Long-term view will turn positive only if the stock goes on to record a strong close above this peak.

Investors with a greater penchant for risk can buy at current level with stop at Rs 27. Short-term targets would be Rs 44, Rs 51 or Rs 58.

Fresh purchases should be avoided if the stock declines below Rs 22. Subsequent target is Rs 12.

Sterlite Technologies (Rs 40.6): Sterlite Technologies is also trying to reverse higher from the recent trough at Rs 27.4. But the rally hasn't progressed enough to indicate that the short-term trend has reversed higher.

The stock faces resistance at Rs 54 and then at Rs 70 in the weeks ahead. Investors with a short-term perspective can divest their holding at either of these levels.

The medium-term outlook will reverse only if the stock closes above Rs 70. Investors wishing to purchase the stock can do so, on a firm close above this level. Subsequent targets are Rs 75 and Rs 87.

Close above Rs 87 will mean that the long-term view has reversed and the stock can head towards its life-time high at Rs 124.

I am holding Ion Exchange purchased at Rs 140 and Jay Shree Tea at Rs 105. Please advise on the outlook for these stocks?

Suresh Kumar Yadav

Ion Exchange (Rs 104.3): Ion Exchange declined below its long-term support at Rs 135 in September last year.

Though this decline halted at the recent trough at Rs 89, the reversal from here has not taken the stock beyond the critical Rs 135 level. Investors need to stay on their guard as long as the stock remains below this level. Target on a decline below Rs 89 are Rs 76 and Rs 55.

The stock will face medium-term resistances at Rs 154, Rs 175 and Rs 197. Investors with short-term perspective can divest their holding at either of these levels.

Jay Shree Tea and Industries (Rs 88.2): This stock is wallowing close to multi-year lows. The stock was unable to get past the resistance at Rs 100 in the recent rally and is once again slipping lower. Investors can hold the stock with stop at Rs 80. If this level is breached, the next halt could be well below at Rs 54 and then at Rs 44.

Medium-term resistances are at Rs 130, Rs 145 and Rs 160.

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