I have shares of Karnataka Bank. My average price is ₹105. Can I continue to hold the stock for another six months or exit now? What are the short- and long-term targets? Please advise.

Samarth P M

Karnataka Bank (₹151.60): The stock has been in a strong uptrend since June 2020. The uptrend is still intact. However, there is not much room left on the upside from here. The stock could be in its last leg of rally. The region between ₹145 and ₹140 will be a key support zone. The stock has been holding well above this support zone over the last few weeks. The price action on the weekly chart indicates the presence of fresh buyers around the ₹145-140 support zone. So, as long as the stock trades above ₹140, the outlook will remain bullish.

Karnataka Bank share price can rally to ₹185 over the next couple of quarters. The ₹185-level is a strong trendline resistance that can halt the rally. The chances are high for the stock to reverse lower and fall towards ₹160 and even ₹140 thereafter. It is now important for you to protect your profit in hand and to exit at the right time. Keep a stop-loss at ₹138 and hold the stock. Move the stop-loss up to ₹158 when the price rallies to ₹172. Exit your positions at ₹180.

I have shares of Affle (India) purchased at ₹1,480. What is the mid- and long-term outlook for this stock? Can I accumulate at current levels?

Vipul Shah

Affle (India) (₹1,083): The stock has been moving up since the middle of May this year. The near-term outlook is positive. Resistance is around ₹1,200. The stock can rise to test this resistance in a month or two. But the price action thereafter is going to be very crucial. A strong break above ₹1,200 will be bullish. Such a break can take Affle (India) share price up to ₹1,400-1,450 thereafter. But if the stock reverses lower from around ₹1,200, the share price can fall to ₹1,000-950 again.

Going back to your purchase price of ₹1,480 is unlikely. It is also not advisable to accumulate here as there is resistance at ₹1,200. So, you choose from the following options. Either exit all your holdings at current levels or exit half of your holdings at current levels. Keep the stop-loss for the balance holdings at ₹1,040. Exit the rest of the holdings at ₹1,170.

I have shares of Sadbhav Engineering, bought at ₹22. Is there any possibility of a trend reversal and a price revival so that I can minimise my loss?

Ankush

Sadbhav Engineering (₹10.95): The stock has been stuck in a narrow range between ₹8 and ₹23 over the last one year. There is no sign of a trend reversal yet. However, on the chart, there is a trendline support around ₹6.50. So, a steep fall from the current levels can be less likely. There is scope to see a rise up to ₹20. But that may or may not happen immediately and it can take a prolonged period of time.

Also the levels of ₹20 and ₹28 are strong resistances. Only a strong monthly close above ₹28 will turn the outlook bullish to see ₹70 and higher levels. You have to hold this stock only on just the hope of it rising from here. But that is not advisable. So, accept the loss and exit the stock at current levels.

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