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I have shares of Hindalco Industries purchased at ₹103. Kindly let me know the short and long-term outlook for this stock.

Manish Kumar

Hindalco Industries (₹97.7): The short-term view for Hindalco is negative. The stock has been down since the peak of ₹125 recorded in January this year. It could head lower to the recent low at ₹83 in the days ahead.

Short-term resistances for Hindalco are at ₹126 and ₹144. Short-term view will turn positive only on a close above ₹144.

The long-term outlook for Hindalco is also negative. The stock has been on a steep decline since the peak of ₹251 recorded in February 2011. Key hurdle from a long-term perspective is at ₹148. Inability to move above this zone will keep the stock in the ₹85-₹150 range.

Targets on a move above ₹150 are ₹167 and ₹187.

It would be best to divest your holding on a decline below ₹83. Supports below this level are at ₹68 and then ₹37.

Please give your medium and long-term outlook for Monnet Ispat and Andhra Bank.

Eldho Mathew

Monnet Ispat & Energy (₹72.9): The long, medium as well as the short-term outlook for Monnet Ispat and Energy are down. The stock recently breached its key long-term support at ₹114, thus reinforcing the long-term downtrend. The stock has immediate support at ₹70. It would be best for investors to exit the stock once this level is broken, since the next support is below ₹10.

Medium-term hurdles for the stock are at ₹136 and ₹170. Medium-term view will turn positive only on a close above ₹170. Next upward targets are at ₹218 and ₹307.

Andhra Bank (₹55): Andhra Bank too made an attempt to move higher since last September. But the rally could not sustain and the stock is once again in a downtrend. This leg of the decline could take the stock lower to the recent trough at ₹47.

Investors should hold the stock only as long as it trades above this level. Breach of this level can drag Andhra Bank lower to ₹38 or even lower.

Short-term resistances are at ₹67 and ₹80. Investors with lower risk appetite can stay away from the stock as long as it trades below ₹80.

Investors with a long-term perspective can hold the stock with the stop-loss at ₹36. Key resistance from a long-term perspective is also at ₹80. Subsequent hurdles are at ₹100 and ₹131.

Can you please give the technical outlook on Asian Paints and Wipro.

Pandurang Deshpande

Asian Paints (₹464.2): Asian Paints has been in a stellar up-move since March 2009, following a deep dive in 2008. The long-term view for Asian Paints continues to be positive as long as the stock trades above ₹371, stock-split adjusted.

Continued sideways move in the band between ₹370 and ₹560 will imply that the long-term view remains positive.

The stock will continue to face resistance at the barrier around ₹560. If it manages to break this level, the stock will move higher to ₹700.

Long-term supports below ₹371 are at ₹314 and ₹256.

Short-term supports are at ₹447 and ₹376. The short-term hurdles are positioned at ₹500 and ₹523.

Wipro (₹571.8): Wipro has been on a strong uptrend since the June 2013 low of ₹322. This rally has resulted in the stock appreciating 75 per cent from this low. The rally can extend further and take the stock towards its long-term target at ₹635. This target is achievable as long as the stock trades above ₹486.

Investors can therefore hold the stock as long as it trades above this support. Declines can also be used to buy with the stop-loss at ₹480. Long-term support below ₹480 is at ₹452 and then ₹422.

It is possible that the stock pauses as it reaches ₹630. But break above ₹630 will mean that the stock is heading towards ₹675.

Request long-term technical outlook for Rural Electrification Corporation (REC).

Panini

Rural Electrification Corporation (₹184.3): REC has been moving in a long-term trading band between ₹150 and ₹250 since the first quarter of 2011. The stock is once more approaching the lower end of this trading band. Investors can therefore hold the stock with a stop-loss at Rs 140. Breach of this level can make the stock plummet to ₹76 or lower.

Resistances for the month ahead will be at ₹232 and ₹267. The stock needs to record a strong close above ₹267 to signal that the long-term view is turning positive.

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