I have shares of Bank of India bought at ₹89.75. Please advise whether I should continue to hold, accumulate or sell at current levels?
Bank of India (₹105.86): The outlook is bullish. The stock has surged about 15 per cent last week breaking above the key resistance level of ₹92. This rise also indicates a breakout of the sideways range that has been in place for a prolonged period of time since 2018. There is a cluster of supports in the broad ₹92-81 region. Any intermediate dips are likely to get fresh buyers around ₹92. Bank of India share price can rise to ₹135-140 over the next two-three months.
There is potential for the upside to extend up to ₹165 over the next six months. You have not mentioned the timeframe that you intend to hold this stock. Assuming your holding period as six months, we suggest you hold this stock for now. Accumulate if you get a dip to ₹93. Keep a stop-loss at ₹82. Trail the stop-loss up to ₹103 when the price moves up to ₹120. Move the stop-loss further up to ₹135 when Bank of India share price touches ₹148. Exit the shares at ₹163.
Last month, Jai Corp rose to a 12-year high. However, it could not sustain. The price has come down sharply over the last two weeks. I have been holding this share for the last six months. Should I hold this stock or exit?
Jai Corp (₹213.45): The stock made a high of ₹249.55 earlier this month, but has come down sharply over the last couple of weeks. The price has tumbled about 14 per cent from the high. The region around ₹250 is a very strong trendline resistance. That has held well and capped the upside for now. Considering the momentum of fall over the last two weeks, the chances are looking high for the share price of Jai Corp to fall further. The next support is in the ₹200-190 region, which can be tested in a month or two. If the stock manages to bounce back from this support zone, the price can rise back to ₹240-250 again. But a break below ₹190 will be bearish.
Such a break can drag the price to ₹160-150 again. You have not mentioned your buy price. Assuming that you might have bought the stock anywhere in the ₹120-140 range, we suggest you exit 50 per cent of your holding at the current levels. Keep a stop-loss at ₹185 for the balance holding and exit if the price falls below ₹190. Move the stop-loss up to ₹215, if the price bounces back to ₹225. Exit at ₹245.
I hold shares of Great Eastern Shipping Company. My average buy price is ₹616. What is the two-year outlook for this stock?
Great Eastern Shipping Company (₹837.20): The stock has been in a strong uptrend, with intermediate corrections since April 2020. This uptrend is intact. There is no sign of a reversal visible yet on the charts. There is an immediate resistance around ₹880. If that holds, there can be a short-lived correction to ₹800 or even ₹770. However, the trend will continue to remain up.
A strong break above ₹880 will pave way for a further rise. From a long-term perspective, Great Eastern Shipping Company share price has potential to target ₹1,050 over the next one year or so. It is now important for you to lock some profit. Keep a stop-loss at ₹740 and hold the stock. Move the stop-loss up to ₹880 when the price touches ₹980. Exit the stock at ₹1,030.
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