What is the outlook for the stock of Kotak Mahindra Bank? The stock does nor seem to be moving much.

Ankit Bhatnagar

Kotak Mahindra Bank (₹1,877.35): The stock has been broadly range bound between ₹1,630 and ₹1,990 since December last year. It touched a high of ₹1,942.6 on Friday and has come off sharply. This indicates that the range is intact. The overall bias is positive. But whether this breakout above ₹1,990 will happen now itself remains a question. Such a break can take the stock up to ₹2,350 and ₹2,550. If the breakout happens now itself, then the rise to ₹2,350-2,550 can happen by this year-end or by the first quarter next year.

In case the stock reverses lower and falls below ₹1,800 from here, then one more leg of fall towards ₹1,650-1,630 is possible. Investors can buy the stock in small quantity, say 40 per cent of the intended amount at current levels. If a reversal is seen, then buy more on dips at ₹1,680. Keep the stop-loss at ₹1,530. Revise the stop-loss up to ₹2,050 as soon as the stock moves up to ₹2,250. Exit 50 per cent of the holding at ₹2,350 and move the stop-loss for the rest of the holding up to ₹2,280. Exit the remaining positions at ₹2,500.

Quess Corp has come from its high. What is the technical outlook for this stock?

Iqbal Khan

Quess Corp (₹577.05): The stock made a high of ₹990 in September last year and has come down sharply from there. Though it found support at a low of ₹527 in March this year, the bounce from here seems to lack strength. Crucial support is at ₹520. The price action over the last few weeks looks like the stock is forming a base above this support. Resistances are at ₹630 and ₹685. A strong rise past these hurdles will give an early sign of bullishness. A further rise past ₹720 will confirm the same. In that case the stock can move up to ₹850-900 over the next three-four quarters.

But if the stock falls below ₹520, it will be under huge pressure. In that case, a fall to ₹300-200 can be seen again. Investors with high-risk appetite can buy at current levels. But keep a very tight stop-loss at ₹480. Move the stop-loss up to ₹640 as soon as the stock moves up to ₹710. Move the stop-loss further up to ₹730 when the stock touches ₹810. Exit the stock at ₹850.

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