What is the long-term outlook of Indian Energy Exchange (IEX)? I have bought the shares of this company at ₹250.

Shakil Akhtar

IEX (₹165.10): The trend is still down. Although the stock seems to be forming a base above ₹150, there is no strong sign of a reversal. Key resistances are at ₹178, ₹190 and ₹195. A strong rise past ₹195 will be needed to confirm a trend reversal. As long as the stock remains below ₹195, there is a danger of seeing one more leg of fall to ₹145 and even to ₹130-125 over the next two-three months. Assuming that you are a long-term investor, you can wait for further fall to buy more of this stock.

Accumulate 40 per cent of the intended amount at ₹145 and the rest at ₹130. Keep a stop-loss at ₹105. A fresh rally from ₹145 itself or from the ₹130-125 region will have the potential to take the stock up towards ₹250 and even to ₹300 next year. Move the stop-loss up to ₹190 as soon as the stock moves up to ₹220. Move the stop-loss further up to ₹230 when the stock touches ₹280 on the upside. Exit the stock at ₹300.

I am holding shares of Geojit Financial Services at ₹65. What is the outlook for the share right now?

Sanjay

Geojit Financial Services (₹47.05): The stock has been in a strong downtrend since August last year. This downtrend is intact and there is room to fall further from here. Immediate support is at ₹42. A break below it can drag the stock down to ₹30. If the stock breaks further below ₹30, it will be in a danger of tumbling towards ₹20-15. It is better that you exit the stock at current levels with minimum loss. If you intend to buy this stock again, you can consider buying partially, say 40 per cent of the intended amount at ₹32. Buy the balance at ₹20. Keep a stop-loss at ₹12.

A fresh rally either from ₹30 itself or from the ₹20-15 support zone will have the potential to take the stock up to ₹100 levels again over the next couple of years. Move the stop-loss up to ₹35 as soon as the stock moves up to ₹60. Move the stop-loss further up to ₹70 as soon as the stock touches ₹85. Book profits at ₹100. Alternatively, if you don’t want to exit the stock at current levels, then accumulate at the levels mentioned above. Keep the stop-loss at ₹12 and follow the same strategy.

The share price of Emami Ltd has corrected very well. Is this a good level to buy this stock? What is the technical outlook?

Sabera Begum

Emami (₹457.35): The recent bounce from the June low of ₹393.6 has given some breather for the stock. But an important resistance is at ₹495 which has to be breached to become bullish completely. So, the current levels may not be a convincing buy for this stock. However, looking at the weekly candles, there is a possible inverted head and shoulder pattern formation. So, there are good chances for the stock to break above ₹495 immediately from here in the coming weeks. Ideally one has to wait for a breakout above ₹495 to get a confirmation and enter the stock.

But if you have a high-risk appetite, then buy the stock at current levels. Keep the stop-loss at ₹385. Move the stop-loss to ₹490 as soon as the stock moves up to ₹540. Move the stop-loss further up to ₹560 as soon as the stock moves up to ₹590. Book profits at ₹630. Please remember, buy now only if you can take high risk anticipating that the stock will break above ₹495 from here. If a break above ₹495 doesn’t happen, then there is a danger of seeing a fall to ₹380 and even ₹340-320.

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