I have bought shares of Coal India at ₹226. Please guide me on what should I do next. At what price should I sell the stock and in what time frame? I can hold the stock for two-three years.

Vimalkirti

Coal India (₹312.30): The trend is up. The long-term outlook is bullish. The price action since November 2018 indicates an inverted head and shoulder reversal pattern. This is a bullish pattern. It strengthens the long-term bullish outlook. Immediate support is at ₹280. Below that, ₹260 is the next strong support. A trendline as well as the neckline of the inverted head and shoulder, both are poised near ₹260. The stock can test ₹345-350 – the immediate resistance over the next two-three weeks.

Thereafter, a corrective fall to ₹300 or even ₹285 is a possibility. However, the trend will continue to remain up. From a long-term perspective, Coal India share price can target ₹420-430 over the next couple of years. Hold the stock. But it is important to protect the profits. So, keep a stop-loss at ₹255 for now. Move the stop-loss up to ₹335 when the price touches ₹385. Move the stop-loss further up to ₹390 when the price rises to ₹410. Exit the stock at ₹420.

I have shares of Persistent Systems. I entered this stock in July 2020 at ₹914.55. Should I book profit and exit the stock or continue to hold it?

Sudhir Padhye, Dombivli

Persistent Systems (₹5,906.50): The stock has been in a strong uptrend since mid-2020. You have entered this stock right at the beginning of this trend. There is no sign of a trend reversal yet on the charts. Indeed, the price action since 2022 resembles an inverted head and shoulder pattern. This is a bullish pattern and in this case, this will act as a continuation pattern. If this pattern plays out well, then Persistent Systems share price will have potential to target ₹7,300 in a year or two. This could sound slightly over bullish, but it is purely based on the chart pattern.

What is important for you is to protect the profits. Supports are at ₹5,385 and ₹4,900. Immediate resistance is at ₹6,250. Keep a stop-loss for 30 per cent of your holdings at ₹5,250. For the balance 70 per cent, have a stop-loss at ₹4,800. When the price goes up to ₹6,450, move the stop-loss to ₹6,050 for your entire holding. Revise the stop-loss further up to ₹6,850 when the price touches ₹7,050. Exit the stock at ₹7,200. The above-mentioned rise to ₹7,300 will get negated if the stock sustains below ₹6,100 now and breaks below ₹4,900. If that happens, the stock can fall to ₹4,400-4,300 and lower.

I intend to buy Control Print, but would want to wait for dips to enter the stock at lower levels. Please give the outlook for this stock for the next six months.

Ashish

Control Print (₹826.55): The stock has been in a strong uptrend. On the charts, it is not very clear, if a reasonable dip can happen from current levels to enter the stock. Supports are at ₹770, ₹750 and ₹715. Control Print share price can rise to ₹935-950 within your time frame of six months. The region around ₹950 is a very strong resistance that can halt the current rally.

A reversal from there can take the stock price all the way down to ₹800. Considering the risk-reward ratio and less chances to get a dip, it is better for you to stay out of this stock. Because there is not much room left on the upside. So, finding a way to enter this stock now would be like getting into a trap near the peak. So, you can avoid this stock.

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