I have shares of Indian Railway Catering and Tourism Corporation (IRCTC). Can I continue to hold this stock or exit? Please advise

Pooja

IRCTC (₹939.20): The stock has been in a strong uptrend since April last year. After moving up gradually for a few months, the uptrend gathered momentum in November last year. IRCTC share price surged to a high of ₹1,049.75 last month and then has come down from there. The price action over the last two-three weeks indicates an intermediate top formation. Immediate support is in the ₹915-910 region. But the chances are looking high for the stock to break below it. Such a break can drag IRCTC share price down to ₹850-800 in a quarter or two.

On the charts, it is not very clear whether the price can rise back to ₹1,200-levels again. Even if the stock bounces back from ₹850-800, it might take a very long time to move up towards ₹1,200. You have not mentioned your purchase price. So, it will be difficult to give a correct advice. However, considering the higher chance for a fall from here, we suggest you to exit the stock at current levels. You can consider reinvesting the sale proceeds in some other stock that looks good on the charts.

I hold shares of Century Plyboards (India), bought at ₹800, a couple of weeks ago. I had a bullish view and entered this stock with a target of ₹850. But the stock price has declined after the company announced its financial results.  Should I sell the stock at current price with a loss or can I hold it for another couple of weeks?

Seshadri Bhattacharya

Century Plyboards (I) (₹731.90): The stock had declined sharply last week breaking below an important support at ₹760. Crucial support is now in the ₹700-680 region. If the stock manages to sustain above this support zone and bounce back, then that could give some breather. A strong rise thereafter and a subsequent break above ₹780 will turn the outlook bullish. In that case, Century Plyboards (I) share price can rise to ₹880 over the next couple of months.

But a break below ₹680 will be bearish, and could see ₹600 and even ₹570 on the downside. If you have a high risk-appetite, then keep a stop-loss at ₹670 and hold it. Move the stop-loss up to ₹770 when the price moves up to ₹810. Move the stop-loss further up to ₹820 when the price touches ₹850. Exit at ₹870. If you are risk-averse player, then exit the stock now with a loss.

I have shares of IKIO Lighting Ltd. My purchase price is ₹387. What is the outlook for this stock? Shall I continue to hold it or exit with a loss?

Selvaraj P

IKIO Lighting (₹295.85): This stock does not have a long history of price data since it got listed recently. That will make it very difficult to do a detailed technical analysis for the long term. However, with the available data, it looks like the stock has been in a strong downtrend. Strong resistance is in the ₹330-350 region. A strong and sustained rise above ₹350 is needed to indicate a trend reversal and move higher towards ₹400. But that looks less likely as seen from the charts. Support is around the current levels of ₹295. A break below it will intensify the selling pressure.

In that case, there is a danger of IKIO Lighting share price tumbling towards ₹250 in the coming months. In case the stock manages to sustain above ₹295 and bounces back, a rise to ₹330-350 is a possibility. But it is not very clear if that will take the IKIO Lighting share price above ₹350 or not. Considering the weakness in the charts, we suggest you to exit the share at current levels and accept the loss.

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