I have bought Tata Motors at ₹900. What is the outlook? Should I continue to hold or exit?
Kumar Raju
Tata Motors (₹744): The stock has been in a strong down trend since August last year. This downtrend is intact. The share price can fall further towards ₹630-₹600 where it can find a bottom. This fall can happen in a couple of months. We expect the stock to see a reversal from the ₹630-₹600 region. From a long-term perspective, a rise from around ₹600 can take the price up to ₹1,100-₹1,200 again. Assuming that you are a long-term investor, we sugges to buy more and accumulate at ₹670. Keep a stop-loss at ₹580. Revise the stop-loss up to ₹810 when the price goes up to ₹980. Move the stop-loss further up to ₹1,020 when the share price touches ₹1,130. Exit the stock at ₹1,200.
I have shares of Godfrey Phillips India. My purchase price is ₹6,250. Should I continue to hold or exit. What is the outlook?
Bhaskar Parab, Mumbai
Godfrey Phillips (₹4,450): The stock has been in a strong downtrend since September last year. The share price has tumbled about 47 per cent from its high of ₹8,480 made in September last year. There is room to fall more. The stock can decline further to ₹3,450-₹3,400 in the coming months where the downtrend can halt. A bounce from around ₹3,400 and a subsequent rise above ₹4,000 can take Godfrey Phillips share price up to ₹5,000 again. Since the stock can fall more from here, it is better to exit and accept the loss. Considering the strength of the recent fall, the bounce back move may not be sharp. Also, a strong rise above ₹5,000 is needed to turn the outlook bullish.
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