I holdam holidoing shares of Tata Consultancy Services (TCS) with a huge loss. Please suggest whether I should book loss and buy later? What is the outlook?
TCS (₹3,216): The stock is hovering around a very crucial level over the last few weeks. The region between ₹3,100 and ₹3,000 is an important long-term support zone. It has been holding very well.
Indeed, on the short-term charts, the test of ₹3,100 in March and April and then a bounce-back gives a positive signal. So, if TCS breaks above ₹3,300, it can move up to ₹3,500 initially. A further break above ₹3,500 will pave way for a fresh rally to ₹3,800-4,000 eventually.
Such a rally will mark the beginning of a new leg of a long-term upmove that will have the potential to take the TCS share price up to ₹5,000. You have not mentioned your purchase prices.
So, it is difficult to give a precise advice. If you can withstand the loss and have capital to accumulate, buy more at current levels. Keep a stop-loss at ₹2,920.
Revise the stop-loss up to ₹3,100 when the price touches ₹3,450. Move the stop-loss further up to ₹3,700 when TCS share price rises to ₹4,300. Exit the shares at ₹4,850.
I have been holding the shares of Data Patterns (India) Limited for more than a year. My average price is ₹774. What is the outlook of the stock? Should I book profit at current levels or hold for much higher price?
Arun K George, Bengaluru
Data Patterns (India) (₹1,664.70): It is a very good buy. The trend is still up. There is no concrete sign of a top yet. The stock has been consolidating between ₹1,550 and ₹1,750 over the last couple of weeks. There is room for the share price of Data Patterns (India) to move further up from here.
Support is at ₹1,590 and ₹1,550. As long as the stock sustains above these supports, the overall uptrend will continue to remain intact. Data Patterns (India) share price can rise to ₹1,870-1,880 in a month or two. So, you can wait and make some more money from this stock.
However, it is very important for you to protect the profit made so far. So, keep a stop-loss at ₹1,545. Move the stop-loss further up to ₹1,680 when the price touches ₹1,770. Revise the stop-loss up to ₹1,810 when the share prices moves up to ₹1,840.
Exit the shares at ₹1,865. The stock can form a top around ₹1,880. Thereafter, we can expect a trend reversal and a fall towards ₹1,600. So, exit the stock either at the above-mentioned target level or if any of the stop-loss is hit rather than becoming greedier.
I have shares of VA Tech Wabag at an average price of ₹353. What is the outlook for this stock? Should I continue to hold or book profit?
VA Tech Wabag (₹390.35): The short-term outlook is bullish. Support is at ₹370. Resistance is at ₹400. As long as the stock sustains above ₹370, there is a strong likelihood of it breaking above ₹400. Such a break can take the VA Tech Wabag share price up to ₹445 initially.
A further break above ₹445 will then boost the bullish momentum and take the share price up to ₹530 over the next one-two quarters. You can keep a stop-loss at ₹360 and hold your position.
By doing so, you will lock in some profit at least if there is a sudden price reversal. Revise the stop-loss up to ₹395 when the price reaches ₹430. Move the stop-loss further up to ₹480 when the share price of VA Tech Wabag touches ₹510. Exit the shares at ₹530.
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