Investors Questions, Technical analysts Answers on Indian stocks and Indian stock market :: 13-08-2006

What is the outlook for GNFC and IVRCL?

GNFC (Rs 99.70): The stock has been moving in a rang between Rs.80 and Rs 100 since mid June. A breakout beyond Rs 100 is required to take the price to Rs.109 levels. Exit the stock between Rs 108 and Rs 110 if the price has been difficulty crossing above this level.Till then hold with a stop loss at Rs 85.

IVRCL Infrastructure (Rs225.10): The price may recent low at Rs 164 on july 24 and is slowing good momentum since then. It is also above its long-term averages, which is a good sign. Hold the stock with a stop loss at Rs 180. The price has the potential to test Rs 240 and then Rs 265 in the next few months, Where you can exit.

What is your opinion on Polyplex and Novartis bought at Rs 127 and Rs 424 respectively.?

Polyplex (Rs 104.50): The chart of Polyplex is looking extremely weak along all time frames. It is also below its long-term supports. Exit the stock if you get a rally to near your purchage price and shift to another stock. Till then hold with a stop loss at Rs.85

Novartis (Rs 422.00): The price has long term support at Rs 400 levels.Significant down fall from these levels is not foreseen.In fact this might be a good idea to accumulate this stock between Rs 380.00 and Rs.450.00 with a 2 to 3 years perspective with a stop loss at Rs 350.

What is the trend of Birla Power and Patel Engineering during FPO.?

Birla Power (Rs 24.50): This Chart has been in a down trend since July 2005. Any spike in prices is likely to meet with fresh supplies.It is best to Exitthis stock if there is a rally to Rs.30. Till then hold with a stop loss Rs 17

Patel Engineering (Rs 323.00): The price is rose steeply from a low of Rs 220 in October2005 to a high of Rs 635 on May12. This entire rise has now been corrected and the price is taking support at Rs 200 once more. Hold the stock with stop-loss at Rs 180. Price can rally to the zone between Rs 360 to Rs 380, Where price can face some resistance. This level needs to be crossed if the price has to rise to Rs 430 or Rs 480.

I had purchased 150 shares of Reliance Energy at Rs 804 a year ago. Please let me know what to do?

Reliance Energy (Rs 474): The chart is in an intermediate term up trend since the low of Rs 362 formed on June 8.

Price faces immediate resistance at Rs 480 and then from Rs 520. These levels need to be surpassed if the price has to rally to your cost price. .

Since you seem to be a long-term investor, you can hold the stock with a stop-loss at Rs 350.

What is the outlook for Adani Exports purchased Rs 190 & India Cements purchased Rs 211.?

Adani Exports (Rs 133): The price broke out on Thursday and moved up. Immediate resistance is at Rs 148 levels and then at Rs 162. You can exit part of your holding if price reverses from these levels. Stop-loss for long-term investors can be at Rs 95.

India Cements (Rs 188): The chart is in a strong intermediate term up trend since the low of Rs 103 hit on June 14.The momentum on the stock is food and it has the potential to rally to its May 2006 high of Rs 240 again. Hold the stock with a stop-loss at Rs 155 if you are a short-term investor. If you are a long-term investor, then the stop-loss can be at Rs 135.

I have 100 shares of Gujarat Flurochemicals Ltd at Rs 580. What is the future prospect of this company?

Gujarat Flurochemicals Ltd (Rs 498): The price broke out this week to a high of Rs 515. Immediate upward targets are Rs 560 and then Rs 597.Exit at Rs 560 it price has difficulty rising above this level. If Rs 560 is crossed strongly, then wait for Rs 597 to exit.Hold the stock with a stop-loss at Rs 270 if you are a long-term investor.

Please advise whether I should hold Hyderabad Industries bought at Rs 383.

Hyderabad Industries (Rs 318): The price is in a long-term downtrend since the of Rs 628 hit on August 19, 2005.Exit if you get a rise to Rs 340. The stop-loss for short-term trading positions ought tot be at Rs 260.

Kindly advise if I can remain invested in Reliance Communication bought at Rs 300 and Hindalco bought at Rs 220.

Reliance Communications Ltd (Rs. 279.6): The chart looks strong from a short-term as well as medium-term perspective. There is short-term resistance at Rs 290 levels. If this level is crossed, short-term targets are Rs 330 and then Rs 350. Keep a stop-loss at Rs 260 if you want to trade for short-term. Medium-term investors can keep a stop-loss at Rs 240.

Hindalco (Rs 165.8): The price is consolidating in the band between Rs 140 and Rs 180 since mid-June. Short-term resistance for this share exists at Rs 180. This level needs to be crossed if the price has to move to Rs 210. If the stock has difficulty crossing Rs 180, you can exit. Short-term outlook is neutral while the medium-term outlook is negative

I want to know the long-term outlook of Sonata Software purchased at Rs 33 and Kajaria Ceramic purchased at Rs 48.40.

Kajaria Ceramics (Rs 48.8): The price has performed strongly in July, rising from a low of Rs 40.The immediate resistance for the price would be at Rs 51 and then at Rs 57. Since the price is showing good momentum keep a trailing stop-loss of Rs 5 from its most recent peak and ride the rally. Long-term outlook is positive for this chart.

Sonata Software (Rs 31.6): The stock has been showing good momentum since its recent low in June 2006.The short-term resistance is at Rs 33. Exit the stock here if price is unable to rally above this price. If price gets past Rs 33, it can rise to Rs 38 or Rs 43.

Should I Buy Sesa Goa at current level of Rs 925?

Sesa Goa (Rs 1,000.9): The chart of Sesa Goa is not displaying any signs of strength.It is best to invest in some other sector that has the momentum. There can however, be a short-term bounce to Rs 1,060 or Rs 1,180 levels.