I had purchased shares of Indian Energy Exchange (IEX) for ₹274 in January this year. What is the outlook for this stock?

V Natarajan

IEX (₹224.75): The fall from the December 2021 high of ₹304 has found support at the 200-Day Moving Average (DMA), currently at ₹201.45. The stock of IEX made a low of ₹192 in February and is attempting to bounce back. Key resistances are at ₹238 and ₹245. A strong rise past ₹245 is needed to become bullish completely and see a rise towards ₹280-₹290 levels again. Inability to breach ₹245 from here can keep the stock under pressure to see a fall to ₹190-₹180 in the next couple of months. From a long-term perspective, the region between ₹190 and ₹180 is a strong support. A fall below ₹180 is less likely.

Assuming that you are a long-term investor, you can consider accumulating the stock at ₹196 and ₹184. Keep a stop-loss at ₹153 and hold it. A fresh rally from the ₹190-₹180 region may have the potential to revisit ₹300 levels over the medium term. A strong break above ₹300 will then pave the way for the stock to see ₹400 levels on the upside from a long-term perspective. You can revise the stop-loss to ₹240 when the stock breaks above ₹300. Book profits at ₹380.

I am holding 100 shares of TTK Prestige at an average price of ₹1,001. I can remain invested for 3-4 years. Please advise whether I can accumulate the stock at lower price.  

Purushottam Pandit

TTK Prestige (₹834.5): The stock had spiked to a high of ₹1,269.6 in December and had come off sharply from there. The downtrend since then is getting support just above the 100-Week Moving Average (WMA), which is currently at ₹743.5. Below this the next strong support is in the ₹660-₹650 region. If the stock manages to sustain above the 100-WMA now, it can consolidate between ₹740 and ₹950 for two-three months. Thereafter a fresh rise breaking above ₹950 targeting ₹1,200 can be seen eventually.

On the other hand, if the stock breaks below ₹740, it can fall to ₹660-₹650. But a further fall beyond ₹650 is less likely. Thereafter the stock can begin a fresh leg of long-term upmove and rise towards ₹1,200 levels again. Since you are a long-term investor, you can consider buying more on dips at ₹760. In case the stock falls below ₹740, accumulate more at ₹680. Keep a stop-loss at ₹540. The stock has potential to target ₹1,200 initially and then ₹1,500 eventually from a long-term perspective. You can consider exiting your positions around ₹1,450.

I have purchased shares of Mahanagar Gas at ₹936. Should I exit and book loss or accumulate at current levels?

Prashant Pore

Mahanagar Gas (₹749.85): This stock has been trading in a very wide gamut since listing. The range of trade has been ₹628-₹1,323. Within this, the stock made a low of ₹680.2 in February and is attempting to bounce back. It is now at the lower end of its range. For now, the broader sideways orbit remains intact. The chances are high for the stock to see a fresh rise from here towards the upper end of the range. However, a sideways consolidation between ₹650 and ₹800 can be seen for a month or two before the above-mentioned rise to the upper end happens.

You can consider accumulating at current levels. Keep a stop-loss at ₹620. The stock can gradually move up towards ₹1,200-₹1,300 – the upper end of the range over the next one year or so. You will have to wait patiently as the stock moves up towards the upper end; exit your holding at ₹1,220.

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Published on March 12, 2022