I have bought Bharat Dynamics Ltd shares at ₹1,150. What is the outlook?
Anish
Bharat Dynamics (₹1,242): The stock is in an uptrend since the last week of November last year. The uprend is intact. The price action since the beginning of this year indicates that the stock is getting strong buying interest around ₹1,100. Some resistance is at ₹1,350. A break above it can take the share price up to ₹1,550-₹1,600 in the next two-three months.
Keep the stop-loss at ₹1,040 and hold the stock. Revise the stop-loss up to ₹1,310 when the price goes up to ₹1,390. Move the stop-loss further up to ₹1,430 when the price touches ₹1,540. Exit the stock at ₹1,600. If you intend to hold the stock for long-term, say a minimum of two years, then you can have a target of ₹2,300. In this case, for every ₹200 move above ₹1,600, revise your stop-loss up by ₹100.
I have shares of South Indian Bank. My purchase price is ₹25. What is the medium-term outlook?
Subramanian
South Indian Bank (₹25.50): The stock touched a peak of ₹36.90 in February last year. Since then it has been in downtrend. A crucial support is in the ₹23-₹22 region. A break below ₹22 can take the share price down to ₹20 and even lower. Resistance is at ₹27.50. A break above it will give some relief and take the price up to ₹30.
A subsequent rise above ₹30 will only turn the outlook bullish and clear the way for a rise to ₹35. For now the outlook is unclear. Keep the stop-loss at ₹21 and hold the stock. Move the stop-loss up to ₹27 when the price goes up to ₹30. Revise the stop-loss further up to ₹31 when the price moves up to ₹33. Exit the stock at ₹35.
What is the outlook for Galaxy Surfactants? I have bought this stock at ₹2,767
Yunus
Galaxy Surfactants (₹2,407): The stock has been oscillating in a wide range of ₹2,200-₹3,500 for more than three years now. Within this, it is now hovering around the lower end of the range. Assuming that the sideways range will continue to remain intact, we expect the share price to rise towards ₹3,300-₹3,500 over the next three-four quarters.
Accumulate on dips at ₹2,280. Keep the stop-loss at ₹2,140. Move the stop-loss up to ₹2,520 as soon as the stock price goes up to ₹2,780. Revise the stop-loss further up to ₹3,060 when the price touches ₹3,180. Exit the stock at ₹3,300. If the stock breaks below ₹2,200, the price can fall to ₹1,900. So, make sure to adhere to the stop-loss and exit accepting the loss.
I have bought Prince Pipes and Fittings around ₹670. I am a long-term investor. What is the outlook?
Ramasubramanian, Bengaluru
Prince Pipes and Fittings (₹380): The stock is in a strong downtrend. The price has been falling continuously since July last year. There is a support at ₹370. A bounce from there and a subsequent rise above ₹400 can give some relief. If that happens, there is a chance of seeing a rise to ₹450-₹500 in the short-term. But the trend will continue to remain down.
A strong rise above ₹500 is needed to turn the outlook bullish. Only then a rise to ₹600-₹700 will come into the picture. But such a rise looks unlikely. It does not make sense to wait just with a hope for a recovery. So, exit the stock and accept the loss.
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