I have shares of Lemon Tree Hotels in my portfolio at an average price of ₹67. Can you please advise me at which price should I book profit in the stock?

Muhammad Ramzan

Lemon Tree Hotels (₹83.25): The trend is still up for the stock of Lemon Tree Hotels. Although the resistance at ₹91 is holding well for now, there is no sign of a reversal. So, you can continue to hold your position. It is very important to protect your profits. So, keep a stop-loss at ₹79 and exit if the stock falls to this level. However, the chances of this stop-loss hitting looks less probable because of a strong support at ₹81.80. A break below it is less likely.

As long as Lemon Tree Hotels sustains above this support, there is no danger for the current uptrend. The up-move from May 2020 is in the form of a bull channel. The channel pattern breakout suggests that the stock has potential to target ₹105 on the upside. The chances of seeing a sideways consolidation between ₹82 and ₹94 cannot be ruled out. A decisive break above ₹94 will pave way for a fresh rally to ₹105. Revise the stop-loss up to ₹91 as soon as the stock moves up to ₹96. Move the stop-loss further up to ₹97 when the stock touches ₹101 on the upside. Book profits on your positions at ₹103.

I have shares of Bharat Forge. My average purchase price is ₹800. What is the outlook for this stock? Should I hold it or exit with a loss?

Vennila Pandurangan

Bharat Forge (₹747.60): The broader outlook for this stock is positive and the overall trend is up. So, you can hold this stock. The fall from August last year is just a correction within the overall uptrend. Immediate support is at ₹675. Then strong support is in the broad ₹650-600 region. Resistance is at ₹865. The chances are high for the stock of Bharat Forge to break above ₹865 by this year-end.

Such a break will pave way for a fresh rally to ₹1,000 and ₹1,050 by the first half of 2023. Assuming that you can hold this stock for this time-frame, keep a stop-loss at ₹635. Trail the stop-loss up to ₹820 when the stock moves up to ₹880. Move the stop-loss further up to ₹940 when the stock touches ₹985. Exit the stock at ₹1,035.

I have bought Sundaram Finance at ₹2,300. What is the medium-term and long-term outlook? Can I continue to hold this stock?

Ganesh M S

Sundaram Finance (₹2,240.70): The long-term outlook is bullish for Sundaram Finance. There is an immediate resistance at ₹2,350. A decisive weekly close above this resistance can boost the bullish momentum. It can take the stock up to ₹2,700 initially. Strong supports are at ₹2,120 and ₹2,010. The outlook will turn bearish only if the stock declines below ₹2,000. But the chances for that are very less. The price action on the charts indicate that the stock is getting bought over the last few weeks on dips to ₹2,100 itself.

From a long-term perspective, Sundaram Finance has potential to target ₹3,300 over the next one year. A break above ₹2,700 will pave way for the rally to ₹3,300. Keep a stop-loss at ₹1,920 and hold the stock. Move the stop-loss up to ₹2,400 as soon as the stock moves up to ₹2,680. Move the stop-loss further up to ₹2,850 when the stock touches ₹3,050 on the upside. You can exit the stock at ₹3,280.

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