I have purchased Hindustan Copper shares at ₹128 per share. The stock price currently is around ₹265. What should I do? Can I continue to hold the stock? What is the outlook?

Sreeja

Hindustan Copper (₹262.50): The short-term outlook is slightly mixed for the stock. There is resistance around current levels. So, the chances of a corrective fall from here cannot be ruled out. A break below ₹260 can trigger a corrective fall to ₹240 initially. A further break below ₹240 can drag the share price down to ₹220-215 in a month or two. But thereafter we can expect a fresh leg of rally. That will have the potential to take Hindustan Copper share price up to ₹320 and ₹370 in the coming months.

Since a corrective fall is more likely from here, we suggest you exit 30 per cent of your holding now. You can consider reinvesting the sale proceeds in some other stock. For the rest of the holdings, keep a stop-loss at ₹205. Move the stop-loss up to ₹290 when Hindustan Copper share price moves up to ₹315. Move the stop-loss further up to ₹330 when the price reaches ₹355. Exit the stock at ₹370.

I have shares of Maruti Suzuki India Ltd. My average purchase price is ₹6,000. The stock is not showing momentum. Can I continue to hold the stock or exit at current levels?

S S Srinivas, Hyderabad

Maruti Suzuki India (₹9,962.30): Yes, you are correct. Maruti Suzuki India stock seems to be losing momentum. The stock faced resistance around ₹10,800 and has been coming down since the first week of December last year. But the overall trend is still up. Although there is room for the share price of Maruti Suzuki to fall more from here, that will not disrupt the big picture. What is happening now is a corrective fall within the broader uptrend. 

The stock can fall to ₹9,300-9,200 in the first quarter this year. But thereafter, a fresh leg of rise will have the potential to take Maruti Suzuki India share price up to ₹12,500-12,700 by the end of this year or early next year. So, you can continue to hold the stock. But what is important now for you is to protect your profits. So, keep a stop-loss at ₹9,100 for now. Move the stop-loss up to ₹10,800 as soon as the stock moves up to ₹11,700. Move the stop-loss further up to ₹11,900 when the price touches ₹12,200. Exit the stock at ₹12,500.

I have Restaurant Brands Asia Ltd shares bought at ₹155 a year ago. What is the outlook for this stock? Can it go back to my purchase price? Should I book loss or accumulate at current levels?

R Parvathi, Chennai

Restaurant Brands Asia (₹125.70): The stock has been oscillating in a broad range of ₹83-₹138 for almost two years now. Within this range, the recent price action indicates that the stock is gaining momentum. As such, the chances are looking high for Restaurant Brands Asia share price to breach ₹138 in the next few weeks. Such a break can take the stock up to ₹160-170 initially. A further break above ₹170 will then have the potential to take Restaurant Brands Asia share price up to ₹190-200 over the long term. Strong support is around ₹108.

The stock has to fall below this support to negate the above-mentioned bullish view of seeing ₹170 and ₹200 on the upside. A fall below ₹108 can drag it down to ₹90-85 again. You can accumulate more at current levels. Keep a stop-loss at ₹98. Move the stop-loss up to ₹135 as soon as the stock moves up to ₹160. Move the stop-loss further up to ₹170 when the price touches ₹180. Exit the stock at ₹190.

Send your questions to techtrail@thehindu.co.in

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