Query Corner

Please let me know the short and long term outlook for Rolta India purchased at Rs 73.

Eldho Mathew

Rolta India (Rs 72): The short-term trend in Rolta India is up, since the trough formed at Rs 50 in June 2013. The stock has been forming higher peaks and troughs since then, implying that the near-term trajectory is up. That said the stock will face resistance at Rs 87 in the days ahead. Inability to surpass this level can result in the stock pulling back to Rs 60 or Rs 53. Investors with short-term investment horizon can, therefore, exit the stock if it fails to move past this hurdle.

Next resistance for the stock is at Rs 112, which is also a key medium-term resistance for the stock. The stock needs to move past this level to signal that the medium-term view is turning positive. Subsequent targets are Rs 130 and Rs 151.

Key long-term resistance for Rolta is at Rs 180. Investors with a long-term horizon can continue to hold the stock as long as it trades above Rs 40.

I am holding Essar Oil bought at an average price of Rs 80. Please advise whether I can hold this for some more time?

V.S. Ganapathy

Essar Oil (Rs 52): Essar Oil has critical long-term support in the band between Rs 45 and Rs 48. The stock is currently reversing higher from this support zone. Investors can continue to hold the stock as long as it trades above Rs 45. Long-term outlook will deteriorate only when this support is breached.

Short-term resistances are placed at Rs 65 and Rs 77. If you do not want to hold on to the stock for too long, you can consider selling it at either of these levels.

Long-term outlook for the stock will turn positive only on a strong close above Rs 96. Inability to surpass this level can shackle the stock in the range between Rs 45 and Rs 95. Targets on the breach of Rs 96 are Rs 120 and Rs 145.

I request your long-term technical outlook for SRF and Torrent Pharma.

Panini Deshpande

SRF (Rs 211): SRF was in a sharp downward spiral since November 2012 that made the stock slide from Rs 236 to Rs 125 by August 2013. But a medium-term uptrend is in progress since this low. It is heartening to note that the stock has managed to move above its key long-term resistance level at Rs 208.

Immediate resistance will be at Rs 250. Investors with a short-term horizon need to tread cautiously as long as the stock trades below this level. But a move above this level can take the stock to Rs 287 and Rs 324. Long-term outlook will turn positive only on a close above Rs 324.

Stop loss for short-term investors can be at Rs 167 while long-term investors can hold the stock with a stop loss at Rs 125.

Torrent Pharmaceuticals (Rs 475): The long-term outlook for Torrent Pharma is positive. The stock has been in the best of health since the low of Rs 252 recorded in December 2011. Though the stock price is declining since the recent high at Rs 521, the decline is not deep enough to cause concern yet. Immediate support that investors need to watch out for is at Rs 400.

The short-term view will stay positive as long as the stock trades above this support. Investors can use declines to this level to buy the stock. If Torrent manages to hold above Rs 400, it can move higher to Rs 538 or Rs 550.

The support that long-term investors need to stay wary of is at Rs 340.

I hold NMDC bought at Rs 135. Please advise if I should sell or hold.

Balu

NMDC (Rs 145): NMDC had key long-term support at Rs 115. Though the stock declined below this level in June 2013, it has formed a firm bottom at Rs 92 and a medium-term uptrend is in progress since this low. Investors can continue to hold the stock as long as it holds above this level. If this level is breached, next halt will be at the April 2007 low at Rs 65.

Short-term resistance for NMDC exists at Rs 158 and Rs 200. Investors with short to medium-term investment horizon can exit the stock if it reverses from either of these levels. Key medium-term resistance for the stock exists at Rs 276. Inability to move beyond this level can result in the stock vacillating between Rs 90 and Rs 275.

I have invested in HIL at Rs 310 . What is the long-term view for this stock?

Suresh

HIL (Rs 274): HIL has long-term support at Rs 255, where it formed a bottom in December 2013. The stock is currently attempting to reverse higher from this level. You can hold the stock as long as it trades above Rs 255. It would, however, be best to divest your holding once the stock declines below Rs 255. For the next support on the long-term chart is at Rs 233 and below that at Rs 100.

Medium term resistances for the stock are at Rs 367 and Rs 435. Key long-term resistance is at Rs 567. It is difficult to envisage a move above Rs 567 in the next two years .

I am holding shares of IDFC bought at Rs 120. Please advise whether to hold or sell the stock.

Alok

IDFC (Rs 100): IDFC is in a short-term uptrend from the recent low at Rs 76. If you are a short-term investor, you can hold the stock as long as it trades above Rs 92. If this support holds, the stock can attempt to move on to Rs 132 or Rs 144 in the short-term.

Decline below Rs 92 can drag the stock to Rs 76. This should be the stop loss for medium and long-term investors.

Long-term hurdles for the stock are at Rs 185 and Rs 210.

Lokeshwarri S K

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