Please provide me an analysis on Indiabulls Real Estate and DLF.

Joshua

Indiabulls Real Estate (Rs 149.5): This stock is in a vicious downtrend since the January 2008 peak of Rs 848. The recovery from the March 2009 low could not retrace even one-third of this decline and the slipping and sliding began once again from the October 2009 peak formed at Rs 298.

The stock once again moved close to its 2009 trough this February and is currently attempting a recovery.

The stock will face resistance at Rs 177 and then Rs 225 in the months ahead. Investors with short- to medium-term perspective can exit the stock at either of these levels. The long-term outlook will turn positive only on a weekly close above Rs 375.

DLF (Rs 245): In our review of this stock in September 2010, we had advised investors to hold the stock with stop at Rs 240. We had also written that close below this level can drag the stock further down to the February 2009 low of Rs 124.

DLF moved below this support in February but it did not decline below Rs 210 and is currently attempting a minor recovery.

Short- as well as medium-term view for the stock is negative and a close above Rs 280 is required to indicate a reversal in the short-term view. Else the stock can decline to the zone between Rs 190 and Rs 200 again. Strong close below this zone will bring the February 2009 trough at Rs 124 into play.

Medium-term view will turn positive only on close above Rs 327. Investors are advised to buy the stock only on a close above this level. Subsequent targets are Rs 397 and Rs 490.

I have purchased TTK Prestige at Rs 1,491. Should I hold it for the long term or book profit and exit?

Shobha Gurjar

TTK Prestige (Rs 2,310.1): There was a spell-binding rally in this stock since the second quarter of 2009 that has left investors gaping in amazement. The stock was wandering in wilderness before this break-out vacillating in a broad range between Rs 90 and Rs 200. But it has not looked back once it broke out of this range in October 2009.

If we extrapolate the targets of this structural uptrend on logarithmic scale, we get targets of Rs 2,112 and Rs 3,570. The stock moved above Rs 2,000 in April and achieved the recent peak at Rs 2,606.

There could be some resistance in immediate future in the zone around Rs 2,500. But the stock is likely to move higher to Rs 3,000 or Rs 3,570 over the long-term.

Investors with long-term perspective should hold the stock with stop at Rs 1,900. Stop-loss for short-term investors can be higher at Rs 2,170.

Please explain the long-term prospects of C & C Constructions.

C.U. Prabhu

C & C Constructions (Rs 141.9): This stock faces long-term resistance around Rs 300. It reversed lower from this region in January 2008 and went on to the low of Rs 71 by October 2008.

The recovery from this trough was once more stymied by this hurdle and after moving below Rs 280 for one year between October 2009 and 2010, the stock is once more in a head-long tumble.

It breached the key long-term support at Rs 155 in February to record the recent trough at Rs 126. Short-term view will turn positive only if the stock climbs above this resistance again.

Key medium-term resistance that investors ought to watch out for is at Rs 187. Failure to move beyond this level can result in the stock moving down to Rs 87 or Rs 71 over the next 12 years.

Long-term view will turn positive only on a close above Rs 224 paving the way for a rally to the previous peak at Rs 286.

Please give me the guidance on Jubilant FoodWorks and Sesa Goa for medium- to long-term.Vivek Agarwal

Jubilant FoodWorks (Rs 625.8): Since the Jubilant FoodWorks was listed in February 2010 only, the stock does not have sufficient history to enable us to form an opinion regarding its long-term prospects. Key medium-term support for the stock is in the band between Rs 460 and Rs 475.

Investors with medium-term perspective can hold the stock as long as it trades above Rs 460. If the stock manages to hold above this buttress, it can move on to Rs 775 or even to Rs 970 over the long-term.

Supports on a move below Rs 460 are at Rs 418 or Rs 356.

Sesa Goa (Rs 316): The structural bull-market in Sesa Goa began in 2000 and one leg of this uptrend ended in June 2008 at Rs 215.

Following the crash in the second half of 2008, this uptrend has resumed in 2009 and is still going strong. But a medium-term correction is currently in progress since the peak of Rs 494 formed in April 2010.

In our review of this stock in January this year we had indicated that medium-term supports existed at Rs 274 and Rs 225 and long-term investors could hold the stock as long as it traded above the second support.

Notwithstanding the intra-day blip to Rs 220 on March 7, the stock bottomed at Rs 255 on March 21, and is attempting a small rally since then. This rally will face resistance at Rs 350 and Rs 407 over the medium-term.

Key long-term resistance is at Rs 500. Long-term target on a move above this level is Rs 660. We continue to advise Rs 220 as the stop-loss for long-term investors.

I am holding Bharat Heavy Electricals Ltd (BHEL) bought at Rs 2,530. What should I do now?

Swaminathan

BHEL (Rs 2,229.7): BHEL is in a medium-term decline since the peak of Rs 2,695 formed in October 2010. This down-move is correcting the entire rally from October 2008 to the same month in 2010. If we consider the retracement targets for this correction, subsequent supports are at Rs 1,850 and Rs 1,650.

Investors with long-term investment horizon can hold the stock as long as it trades above the second support. Those with a shorter perspective can hold the stock with the stop-loss at Rs 1,900.

Medium-term resistances would be at Rs 2,400 and Rs 2,700. Long-term target above Rs 2,700 would be Rs 2,960.

Please give the technical view on Tata Sponge Iron.

Satya Prasad

Tata Sponge Iron (Rs 353.8): This stock faces strong resistance around Rs 400. The stock has made multiple attempts to get above this barrier since January 2010.

The declines from this resistance were, however, quite shallow and halted close to Rs 300.

Tata Sponge Iron has immediate support in the zone between Rs 290 and Rs 300 and investors can hold the stock as long as it trades above Rs 290. If this level holds, the stock can go on to Rs 480 or Rs 600 over the long-term.

Conversely, decline below Rs 290 will mar the long-term picture, paving the way for a slide to Rs 255 or Rs 220 over the ensuing months.

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