Here are some answers to readers’ queries on the performance of their stock holdings.

I have bought Khaitan Chemical & Fertilizers at ₹12. Please let me know the prospects. Should I accumulate on every decline?

Sabera Begum

Khaitan Chemical & Fertilizers (₹10.8): Long-term trend has been down for the stock from its life-time high at ₹25, marked in October 2010.

The stock failed to breach its significant long-term resistance at ₹13 this May and started to decline.

Only a conclusive breakthrough of ₹13 can push the stock northwards to ₹15 and ₹16. To alter the stock's long-term downtrend, it needs to emphatically trend above ₹17.6. In that case it can move higher to ₹20.

But a fall below its immediate base at ₹9 can see reinforce its long-term downtrend and drag the stock down to ₹6 or ₹5 eventually.

As the stock is moving from one circuit to another without giving any clear opportunity to buy or sell, it is risky to hold the stock. Further, its outlook is bearish. Hence, exit the stock.

I am holding Tilaknagar Industries purchased at ₹62. What is your long-term view? At what level can I purchase Radico Khaitan?

Milind Chintaman Suryarao

Tilaknagar Industries (₹58.7)

The stock is finding it difficult to breach its key hurdle at ₹65 after testing it in April and May 2014.

Since August 2013, the stock has been in a sideways consolidation phase between ₹50 and ₹65. You can consider making use of dips to accumulate and hold the stock with a stop-loss at ₹48. A positive breakthrough of ₹65 will pave the way for an up-move to ₹73 or ₹81-85 band in the medium to long-term. Conversely, a decline below the lower boundary can trigger selling interest and drag the stock down to ₹40 level. Next significant support is at ₹33.

Radico Khaitan (₹114.3)

The stock declined steeply, breaching a key support at ₹130 in this April. However, it found support at ₹100 in early May and is on a nascent up move. Last week, the stock has gained 10 per cent with good volumes. This gives opportunity for buying the stock with a short-term perspective with a stop-loss at ₹100. The stock can extend its current rally and face resistance at ₹130 which is a significant long-term barrier. The stock can find it difficult in breaking past this level. Hence take profits off the table at that juncture. Next key resistance is at ₹150. However, a strong fall under ₹100 can bring back selling interest and open the gates for a decline to ₹89 or ₹76 levels.

What is the outlook for Amara Raja Batteries? Is it the right time to buy the stock or we shall have to buy it on dips?

C M Patnaik

Amara Raja Batteries (₹429.8)

The stock has been on an uptrend in all time frames. Short-term trend will remain up as long as the stock trades above ₹385. Yes, you can make use of dips to buy the stock with a stop-loss at ₹385. The stock can extend its uptrend and reach ₹460 and then ₹500 in the short to medium-term. Investors with medium-term perspective can hold the stock with a stop-loss at ₹360 and long-term investors hold with stop-loss at ₹320. Only a strong fall below ₹320 will mar the stock’s long-term uptrend and drag it down to ₹280 with a pause around ₹300.

Could you please let me know what is in store for CESC? I have been holding it for over two years.

KV Nandan

CESC (₹622.8)

Following a strong rally in May, the stock of CESC encountered its long-term resistance at ₹650 recently. The stock is now vacillating below this resistance level. A strong breakthrough this level will pave the way for a rally to ₹715 and new highs in the medium-term. Inability to breach the aforementioned resistance can drag it down to ₹520 or ₹500 in the medium-term. Key support below ₹500 is at ₹450. Investors with a long-term perspective can remain invested with a stop-loss at ₹400.

Kindly let me know the short term perspective of Mangalore Refineries & Petrochemicals Ltd.

Govind C

Mangalore Refineries & Petrochemicals (₹74.3)

Though the stock is out of the woods after an almost four-year downtrend, its short-term outlook is under threat. After testing its significant long-term resistance at ₹80 in late May, the stock has been moving sideways between ₹66 and ₹80. A fall below ₹70 can pull it down to the lower boundary at ₹66. A further fall can activate selling pressure and drag it to ₹60 or even ₹55 in the short to medium term. On the other hand, an emphatic breakout of ₹80 levels can push the stock northwards to ₹87. Subsequent long-term resistance is in the band between ₹93 and ₹96.

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