I have purchased 500 shares of CESC in September 2021. My purchase price is around ₹87. What is the outlook for the stock? Can I continue to hold the stock?

Vijayan Kuttiadan, Kannur

CESC (₹100.50): The outlook is bullish. The trend is up since April this year. Support is around ₹95. The stock is unlikely to fall below ₹95. CESC share price can rise to ₹115 over the next three-five months. You can continue to hold the stock. Keep a stop-loss at ₹92. Move the stop-loss up to ₹101 as soon as the stock moves up to ₹106. Move the stop-loss further up to ₹108 when the price touches ₹111. Exit the shares at ₹115. The region around ₹115 is a very strong long-term trend resistance. As such, the chances are high for the current uptrend to end around ₹115.

So, we can expect the trend to reverse lower from around ₹ 115. So, you will have to exit your holdings at ₹115 rather than expecting for much higher levels. On the other hand, if it breaks below ₹95 from here itself and declines, exit all the shares at the above-mentioned stop-loss level of ₹92. But we see very less chances for that fall to happen. Instead, the preferred path of move would be to test ₹115 on the upside first and then see a reversal.

I have bought Laxmi Organic Industries at ₹251 as an investment. What is the outlook? Where can I accumulate this stock? What can be the target price to exit?

Devang Joshi

Laxmi Organic Industries (₹281.55): The stock has been broadly trading in a sideways range since May this year. The range of trade has been ₹245-320. Within this range, the bias is bullish. Immediate resistance is at ₹293. But the chances are high for the stock to break ₹293 and rise to ₹320 – the upper end of the range. From a slightly big picture, the chances are high to see an extended rise to ₹340. This can happen by the end of first quarter or early second quarter next year. The price action, thereafter, will need a close watch.

Failure to breach ₹340 can drag the share price below ₹300 again. A decisive break above ₹340 will be very bullish to revisit ₹400-levels over the long term. For now, keep a stop-loss at ₹235 and hold the stock. Move the stop-loss up to ₹285 when Laxmi Organic Industries’ share price rises to ₹310. Move the stop-loss further up to ₹320 when the price touches ₹335. If the price moves above ₹340, hold the stock and exit at ₹400. Else the stock turns down from ₹340, exit at ₹320 as mentioned above.

I have shares of Kiri Industries. My purchase price is ₹360. What is the outlook for this stock? Should I continue to hold the stock or exit and book loss?

Devanshu Mohata

Kiri Industries (₹292.35): The stock has been stuck below ₹300 since April this year. On the chart, there is no sign of strength. The immediate outlook is mixed. The stock price can go either way. A decisive rise above ₹300 can take it up to ₹400-420. On the other hand, a fall below ₹260 can drag Kiri Industries’ share price down to ₹200. From a big picture perspective, the stock has been broadly range bound between ₹200 and ₹700 since 2017.

Considering this, there could be chances of the downside being limited to ₹200. So as long as the stock holds above ₹200, there are chances to see a rise back to ₹700. This is assuming that the range is intact. But even if the rise to ₹700 happens again, it may take a long time. So, it won’t be worth the wait. As such, we suggest you to exit the share at the current levels and accept the loss.

Send your questions to techtrail@thehindu.co.in

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