I have shares of Tata Elxsi bought at ₹547.55 some years ago. The stock crossed ₹10,000 and has come down very much now. Should I continue to hold or exit and invest in some other stock?

Sudhir Padhye, Dombivli East

Tata Elxsi (₹5,961.50): One of the biggest mistakes that is very common among investors is timing their exit. Many get their entry into a stock at the right time. But they miss to do the same for exiting also. This is where the concept of stop-loss comes into the picture. There is a myth that stop-loss is only for traders and not for long-term investors. It is not so. Especially when the share price surges like Tata Elxsi from your purchase level of ₹547 to ₹10,000, it is very important to protect your profits.

At times like this, one has to plan their exit in stages if not at one go. For example, one can consider exiting in tranches like 30, 30, 40 per cent of the holding at three levels as the price starts to fall. The ratio can vary based on your risk-appetite. Coming to Tata Elxsi, the trend is down. There are crucial supports at ₹5,790 and ₹5,630. A break below ₹5,630 can drag the stock all the way down to ₹4,500. Resistance is in the ₹6,900-7,000 region. A rise above ₹7,000 is needed to bring back the chances of revisiting ₹10,000-level. Our suggestion will be to exit the stock and invest the sale proceeds in some other good stock.

I had purchased the stock of Tata Consumer Products at ₹840. What is the outlook? Should I hold or exit with a loss?

Akhil Mukundan, Secunderabad 

Tata Consumer Products (₹710.05): The long-term trend is up. Within that, the stock has been consolidating in a broad range since mid-2021. A crucial support is at ₹695. This is holding well as of now. A rise above ₹715 from here will ease the danger of the stock falling below ₹695. In that case, Tata Consumer Products’ share price can rise to ₹750-760 initially. An eventual break above ₹760 will then open the doors to target ₹845-850 over the next three-six months.

From a long-term perspective, a sustained rise above ₹850 is needed to bring back the bullish momentum. In that case, Tata Consumer Products’ share price can target ₹1,200 over the long term.  Assuming that you are a long-term investor, we suggest you accumulate at the current levels. Keep a stop-loss at ₹660. Revise the stop-loss up to ₹760 when the stock moves up to ₹840. Move the stop-loss further up to ₹930 when the stock touches ₹1,000. Exit your holdings at ₹1,200.

What is the outlook for Marksans Pharma?

Farhan, Salem

Marksans Pharma (₹70.49): The short- and medium-term outlook is bullish for the stock of Marksans Pharma. The stock has been moving up since July last year. Strong supports are at ₹62 and ₹57. Marksans Pharma share price can rally to ₹90 over the next three-six months.

If you want to play this stock for the above-mentioned time-frame, then you can buy at the current levels. Accumulate at ₹66. Keep the stop-loss at ₹59. Trail the stop-loss up to ₹74 as soon as the stock moves up to ₹79. Move the stop-loss further up to ₹81 when Marksans Pharma share price touches ₹85. The region around ₹90 is a strong trend resistance. The chances of the price turning down from there are more likely. So, exit the shares at ₹88.

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