What is the outlook of Tata Investment Corporation? I intend to purchase this stock between ₹1,400 and ₹1,500. Can the price fall to this level? Please advise.

T Raveendran, Chennai

Tata Investment Corporation (₹2,302.20): The stock spiked to a high of ₹2,886.50 in September and has come off sharply from there. It fell to a low of ₹2,158 and has been in consolidation over the last few weeks. Immediate supports are at ₹2,249 — the 38.2 per cent Fibonacci retracement level and then a trendline at ₹2,185. A break below ₹2,185 can drag the stock down to ₹2,052 — the 50 per cent Fibonacci retracement support or even ₹1,950 — an important trendline support.

We expect ₹1,950 to be the maximum downside from current levels. So, getting ₹1,400-1,500 levels on the downside is less likely. Also, can the stock see a surge as was seen in September? The chances are less. We see strong resistance around ₹3,000, which can be a cap for the stock. It would be better if you can look for some other better stock that are looking more convincing on the charts with better chance for a rally.

I have shares of Indian Energy Exchange (IEX) at an average price of ₹199. The stock price has been coming down continuously. Should I hold this stock or book loss? Please advise.

S. Gopalakrishnan, Cuddalore

IEX (₹138.30): The stock has been in a strong downtrend since January this year. There is a long-term trendline support coming up at ₹126. The chances are high for IEX to find a bottom here. However, a strong bounce from around ₹126 and a break above ₹160 will be the first sign of reversal. A subsequent rise past ₹175 is necessarily needed to confirm a trend reversal. In that case, there are good chances for the stock of IEX to rally to ₹250 and ₹300-levels again. This might take another year or two.

Since the stock has been falling continuously since the beginning of the year, we place higher probability for it to find a bottom around ₹126. So, assuming that you are a long-term investor, accumulate IEX at ₹132. Keep a stop-loss at ₹115 and hold the stock. Move the stop-loss up to ₹161 when the stock moves up to ₹174. Move the stop-loss further up to ₹210 when the stock touches ₹240 on the upside. You can exit the stock at ₹305.

Can you please guide me on the short- and long-term outlook for the stock of Jubilant FoodWorks?

Mangesh Sri

Jubilant FoodWorks (₹594.15): The stock is in its early stage of trend reversal. The low of ₹451.6 made in May this year and the bounce thereafter indicates that the downtrend that was in place since October last year could have possibly ended. This bounce has also happened just around a long-term trend support level of ₹460. Important resistance is at ₹660, which is capping the upside for now. A strong rise past this resistance will confirm the trend reversal.

In that case, Jubilant FoodWorks will have potential to target ₹1,100 on the upside over the next two years. Immediate support is at ₹580. Below that ₹560-550 is the next strong support. Long-term investors with a two-year time-frame can buy the stock now. Accumulate on dips at ₹560. Keep the stop-loss at ₹470. Move the stop-loss up to ₹610 as soon as the stock rises to ₹690. Revise the stop-loss further up to ₹720 when the stock touches ₹800 on the upside. Exit the stock at ₹1,040.

Related Topics
comment COMMENT NOW