I have shares of Jindal Poly Films purchased at ₹800. I am a long-term investor. Should I continue to hold and average at current levels? Or should I exit the stock with a loss?

A R Ramnarayanan, Chennai

Jindal Poly Films (₹492.60): The stock price peaked at ₹1,444.40 in March 2022 and has been in a strong downtrend since then. The price action in the second half of 2023 indicates lack of strong follow-through buyers to take the share price decisively above ₹700. That keeps the overall downtrend intact. The outlook is bearish. Moving average cross-overs on the chart strengthen the bearish case. Immediate support is at ₹475.

But the chances are high for the stock to break it. Such a break can drag Jindal Poly Films share price down to ₹350 initially. A further break below ₹350 will see the price tumbling towards ₹200 in the coming months. To avoid this fall, the stock has to see a sustained rise above ₹700. But that looks less likely. For a rise above ₹700 to happen, the stock might need some strong positive trigger. So, we suggest you exit the stock and accept the loss.

I have bought Zee Entertainment Enterprises (ZEEL). My average purchase price is ₹206. What is the outlook for this stock?

Malarvasagan, Hosur

ZEEL (₹142.25): The overall trend is down for ZEEL. However, the stock is coming closer to a long-term trend support, which is poised around ₹110. So, although there is room for a fall to ₹110, the price action thereafter will need a very close watch for a reversal. Since the stock has been falling since 2018 from a high around ₹619, the chances of it halting at around ₹110 is very high. A strong bounce from around ₹110 might have the potential to take ZEEL share price up to ₹300-350 in a year or two. If that rally manages to breach ₹350, then that would indicate the trend reversal.

If that happens, then ZEEL share price can surge to ₹600-₹620 in the next couple of years thereafter. If you are a long-term investor and have the risk-appetite to hold this stock for another five years, then accumulate on dips at ₹120. Keep a stop-loss at ₹80. Move the stop-loss up to ₹250 when the price moves up to ₹320. Move the stop-loss further up to ₹420 when the price touches ₹540. Exit the stock at ₹600. As mentioned above, this rally will take time. So you may have to be patient to withstand the intermediate volatility.

I am holding the shares of Bharat Petroleum Corporation Ltd (BPCL). What is the outlook for this stock? Should I continue to hold it or exit?

Krishna

BPCL (₹586.25): The broader trend is up, and it continues to remain intact. The fall from the recent high of ₹687.65 made in February this year is just a correction within the overall uptrend. Immediate support is around ₹545, which can be tested in the next few weeks. In case the price falls below ₹545, there can be an extended correction up to ₹500. However, a fall below ₹500 could be difficult. As such, the stock can resume the uptrend from around ₹500.

That leg of rally will have the potential to take BPCL share price up to ₹750 and ₹800 over the long term. Since you have not given your purchase price, it is difficult to give a precise advice. However, if you are long-term investor and can hold the stock for another couple of years, then consider buying more at ₹520. Keep a stop-loss at ₹460. Move the stop-loss up to ₹580 as soon as the stock moves up to ₹650. Move the stop-loss further up to ₹660 when the price touches ₹720. Exit the stock at ₹800.

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