What is the outlook for the stock of Indian Railway Catering and Tourism Corporation (IRCTC). Can I accumulate at this level?
S Gopalakrishnan, Cuddalore
IRCTC (₹626): The broader trend has been down since October 2021. The stock made a low of ₹557.15 in March this year and been on a corrective rise since then. The short-term outlook is positive. The recent corrective rise has room on the upside. Support is at ₹600. As long as IRCTC sustains above this support, the chances are high for it to move further up. A rise to ₹685-710 looks possible over the next couple of months. What happens thereafter is going to be very crucial. A sustained rise past ₹710 will be very bullish. It will also indicate a trend reversal.
That will open the doors to target ₹750 initially. It will also turn the long-term outlook bullish for the stock of IRCTC to target ₹900 eventually. On the other hand, if the stock turns down from around ₹700, it can fall back to ₹600 and ₹550. Since you have not mentioned your buy price, it is difficult to give a clear advise. However, watch the price action around ₹700. If the price reverses from there, exit your positions. In case a break above ₹710 is seen, then you can wait for the targets of ₹750 and ₹900 and exit accordingly.
I have purchased shares of Minda Corporation at ₹211. Should I book profit or continue to hold? Please advise.
Minda Corporation (₹269.75): The trend is up. The fall last week from the high of ₹288.45 looks likely to be a correction within the overall uptrend. Supports are at ₹265, ₹255 and ₹250. We can expect one more leg of upmove to begin anywhere from the broad ₹265-255 support zone. That can take the Minda Corp share price up to ₹300 in a month or two. The level of ₹300 is a strong long-term trend resistance which can cap the upside. A break above ₹300 will need some strong trigger.
As such, the upside is also looking limited from current levels. So, it is very important for you to protect your profits. We suggest you exit 20 per cent of your holdings at current levels. Keep a stop-loss at ₹248 for the remaining 80 per cent. Move the stop-loss up to ₹265 when the price touches ₹280. Revise the stop-loss further up to ₹275 when the share price of Minda Corp reaches ₹285. Exit your holdings at ₹295.
I have shares of NBCC (India). My purchase price is ₹38. What is the outlook for the next one year?
NBCC (India) (₹40.81): It is a good buy. The outlook is bullish. Immediate support is at ₹38 and ₹37.50. On the other hand, resistances are at ₹45 and ₹47.50. A rise to test these resistances can happen over the next two-three months or even earlier than that. Such a move will also confirm a channel breakout which will boost the bullish momentum. A corrective fall from ₹45 or ₹47.50 towards ₹43-41 cannot be ruled out. However, the overall trend will remain up.
A fresh leg of rally again from around ₹43-41 will have the potential to break ₹47.50 and target ₹51-52 over the next one year. In case ₹47.50 gets broken on its first test itself, then the rise to ₹51-52 can happen much earlier. Keep a stop-loss at ₹36. Trail the stop-loss up to ₹41 as soon as the stock moves up to ₹45. Exit 30 per cent of your holding at ₹46.50. Move the stop-loss for the rest of the holding at ₹44. Revise the stop-loss up to ₹47 when the price touches ₹49. Exit your holdings at ₹50.
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