I have shares of ITC. My purchase price is ₹450. What is the outlook for this stock?

Raman Rao 

ITC (₹428.55): The outlook is slightly unclear for now. Recently, the stock has found strong support around ₹400 and has risen back very well last month. However, there is no strong signs of a bullish trend reversal. Immediate resistance is at ₹440. Above that, ₹470 is the next crucial level to watch. ITC share price may have to see a decisive monthly close above ₹470 to strengthen the case for a bullish reversal.

Only in that case, the chance of a rise to ₹530 and higher levels will come into the picture. Else the stock can remain vulnerable to break ₹400 and fall further. The levels of ₹380 and ₹360 are the next important supports to watch below ₹400. Since there is no clear bullish signal, our suggestion will be to exit the stock and accept the loss. You may consider reinvesting the sale proceeds into some other stock that looks good on the charts.

I have bought Restaurant Brands Asia shares at ₹129. I am holding this share for about two years. I am ready to hold the stock for another three-four years to take profit. What is the strategy I should follow?

Bharat Derasari

Restaurant Brands Asia (₹101.50): This stock has been trading inside a wide range for more than two years. The trading range has been ₹83-138. The recent fall below ₹110, an important support, has turned the outlook bearish within this range. This has increased the chances of the share price falling towards ₹83 - the lower end of the range. The downside can even extend to ₹81. This fall can happen over the next couple of quarters or even earlier than that. A bounce anywhere from the ₹83-81 region will keep the sideways range intact.

In that case, Restaurant Brands Asia share price can rise back to ₹135-138 by this year-end. Since you are ready to hold the stock for the next three-four years, we suggest you accumulate at ₹85. But keep a very tight stop-loss at ₹78. Because a break below ₹80 can see the stock tumbling lower. Revise the stop-loss up to ₹110 as soon as the stock moves up to ₹120. Move the stop-loss further up to ₹125 when the price touches ₹130. Exit the stock at ₹135. You can re-enter the stock again if the price breaks above ₹138.

I have shares of Devyani International purchased at ₹190. I am a long-term investor. Can I continue to hold the stock? If yes, is it good to average at current levels? Or should I exit the stock with a loss? What is the outlook?

Ayush Mehta

Devyani International (₹150.45): The stock is now poised at a very crucial level. The region between ₹150 and ₹140 is a critical support zone. If there is a bounce from this support zone, Devyani International share price can go up to ₹160. A decisive rise above ₹170 might be needed to turn the view convincingly bullish. Only in that case, the long-term outlook will become positive for the stock to target ₹230-240 in the coming months.

Even if this rally happen, it might take a long time. If you have high-risk appetite to with stand the loss, keep a stop-loss at ₹135 and hold the stock. Buy more after the share price crosses above ₹170 and move the stop-loss up to ₹160. Revise the stop-loss further up to ₹190 when the price touches ₹210. Exit the stock at ₹235. You may have to wait very patiently to get this level. Also, follow the stop-loss levels mentioned above strictly.

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