I have purchased IFCI and GVK at Rs 40 and Rs 15 respectively. Should I book loss and exit?

Ranjan

IFCI (Rs 30.1): The trends along all time-frames — long, medium and short are down for IFCI. The stock is also trading below its medium-term support at Rs 31. Investors with a short- to medium-term perspective can exit the stock at this juncture.

Decline to Rs 24 or Rs 20 is possible in the months ahead. If the Rs 20 level is breached, the stock can move down to the 2009 trough at Rs 16. The medium-term outlook for the stock will turn positive only on a strong close above Rs 55.

Short-term resistance for the stock would be at Rs 40 and Rs 50.

GVK Power & Infrastructure (Rs 9.2): GVK has also declined well below your cost price. But you can take heart from the fact that the stock is vacillating around the long-term support at Rs 10 since April. Investors can hold the stock with stop at Rs 8.5.

The stock will face resistance at Rs 16 and Rs 20 in the months ahead. Key long-term resistance for the stock is at Rs 42. Investors can also consider exiting the stock at this juncture and buying it back on a strong close above Rs 42.

Kindly let me know your short- and long-term views on Navin Fluorine and Jindal Saw.

M M Fakih

Navin Fluorine International (Rs 200.5): Navin Fluorine has been in a long-term decline since the peak of Rs 438 recorded in May 2012. But the stock has important support in the zone between Rs 190 and Rs 215. It is currently drawing close to this level. Investors with long-term perspective can, therefore, hold the stock as long as it trades above Rs 190.

But decline below this level can cause a deep cut and investors are advised to divest their holding on move below Rs 190.

Rallies will face resistance at Rs 290 or Rs 350 in the coming months. Key long-term hurdle is in the zone between Rs 390 and Rs 440.

The stock has repeatedly reversed lower from this zone since 2006 and is unlikely to surpass this resistance in a hurry.

Jindal Saw (Rs 83.1): Jindal Saw has key long-term resistance around Rs 220. The stock reversed from this zone in January 2008 and again failed to cross this ceiling in 2010. It formed a triple-top pattern around this zone between April 2010 and January 2011 and is grinding lower since then.

This decline has pulled the stock below its key long-term support at Rs 106. The stock is currently attempting to stabilise around Rs 80. But the sideways movement in this zone is devoid of strength. Next supports on the chart are placed at Rs 65 and Rs 47.

Short-term resistances are placed at Rs 120 and Rs 143. Key medium-term hurdle is at Rs 175.

Kindly give long-term outlook on ICICI Bank purchased at Rs 1,165.

RM. Kumarappan

ICICI Bank (Rs 1,228.6): The stock bottomed out in December 2011, taking support at significant long-term base level at around Rs 650. Since then, the stock has been on a long-term uptrend. Medium- as well as short-term trends are also up for the stock. However, the stock is facing key resistance ahead at Rs 1,275 levels.

An emphatic breakthrough of this resistance will strengthen the bullish momentum and accelerate the stock northwards to Rs 1,350 and then to Rs 1,450 in the medium- to long-term.

Investors with long-term perspective can hold the stock with stop-loss at Rs 950. Failure to rally above Rs 1,275 will confine the stock to trading sideways in the band between Rs 1,100 and Rs 1,275.

On the downside, decisive fall below the key support at Rs 1,100 will pull the stock down to its subsequent supports at Rs 1,050 and Rs 1,000.

I bought Kappac Pharma shares at Rs 55. In the past month it has been hitting the upper circuit. Shall I hold or sell?

Jayant Dharod

Kappac Pharma (Rs 103.5): Yes, the stock is hitting upper circuit limits every day. On Friday, the stock registered a new high at Rs 103.5. It is a volatile and illiquid stock. We, therefore, advise you to exit the stock.

Please give your technical advise on Tide Water Oil.

R. Nagabhushana Rao

Tide Water Oil (Rs 7,387.5): The stock is facing difficulty in surpassing its key resistance at Rs 8,500. After testing this resistance in February 2012, and again in January 2013, the stock reversed lower and started trending downwards. Since this January peak, the stock has been on a medium-term downtrend. But short-term trend is currently up and the stock is facing important resistance at Rs 7,700 level.

Inability to rally beyond this level will pull the stock down to Rs 7,000. And a strong decline below Rs 7,000 will reinforce bearish momentum and pull the stock down to Rs 6,800 or to Rs 6,700 in the medium-term.

An emphatic jump above Rs 7,700 will push the stock to its Rs 8,000 and Rs 8,100 resistance band. The stock needs to break through this band to alter the medium-term downtrend and take it northwards to Rs 8,500 levels.

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