I had bought shares of IDFC before it split into IDFC and IDFC First Bank. Thus, I am now having both the stocks at an average price of about ₹75. What is the outlook for these stocks? Should I continue to hold or sell?

Dr Anant Kanuga

IDFC (₹55.35): The pace of rally that has been in place since May 2020 seems to be losing momentum. Strong long-term trend resistance is around ₹70. Immediate support is at ₹51.5. Next important support is at ₹48.

Looking at the long-term picture, the chances are high for the stock to stay below ₹70. Two possibilities are there. Either the stock remains stuck in between ₹48 and ₹70 for several months. Secondly, it could break below ₹48 and fall to ₹35 and ₹30. Overall, the chances of the stock going above ₹70 look bleak at the moment. So, it is better to exit this stock now.

IDFC First Bank (₹40.75): This stock is looking much weaker that IDFC Limited. It looks vulnerable to fall towards ₹32-₹30 from here. Strong resistance is at ₹46 and ₹50. The stock has to rise past ₹50 to become bullish. But that looks unlikely on the charts. Exit this stock as well.

You can use the sale proceeds of these stocks to buy some other quality shares that can recoup all the loss and give you a decent profit from a long-term perspective.

I have bought GNA Axles at ₹545. What is the short-term outlook for this stock?

T Selvam

GNA Axles (₹479.5): The stock made an all-time high of ₹1,107 in October last year and has plummeted from there. Immediate outlook is bearish. There is room to test ₹400 on the downside. However, the level of ₹400 is a strong support. A break below it might be difficult. As such, the current fall can find a bottom around ₹400 and a fresh rally is possible from there. A consolidation between ₹400 and ₹500 can be seen for some time before a rally to ₹600 and higher levels happen.

Since you have been holding the stock all through this fall, you can consider accumulating it at ₹410. Keep a stop-loss at ₹320. The first target could be ₹720. You can book partial profits, say, on 30 per cent of your holding at ₹720. Hold the rest of the holding with a revised stop-loss at ₹580 for the target of ₹980.

I have shares of Kellton Tech Solutions at an average price of ₹60.  What is the outlook for this stock?

Sunil Dhoot

Kellton Tech Solutions (₹84.45): The stock made a new high of ₹134.9 in January this year and has come off from there. The outlook is bearish. Resistance is now at ₹94. As long as the stock stays below this resistance, the chances are high for it to break below ₹70 initially. Such a break can then drag the stock further down to ₹60-₹55 in the coming months eventually.

The levels of ₹71 and ₹56 are the 50 and 61.8 per cent Fibonacci retracement supports. You can book profits on some, say, 40 per cent of your holding. Wait for the above-mentioned fall. You can consider accumulating more by buying back again at ₹60. Keep a stop-loss at ₹36. A fresh rise from around ₹60 can take the stock up to ₹90-₹95 again where the stock can pause for a while. An eventual break above ₹95 will then see the stock surging towards ₹130-₹135 levels over the long term. Move the stop-loss up to ₹83 when the stock rises above ₹100 and consider exiting the stock at ₹130.

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