Indian Stock Market Blog

14000 soon!! December 28, 2006

The Sensex is likely to target 14,000-mark in the next two trading sessions. However, the market may witness some volatility on account of the December futures & options expiry today.

The index is likely to face resistance around 13,930-13,950-13,970 levels. On the downside the index may find support around 13,790-13,770-13,750 levels.

-Business Standard.

What Now? December 11, 2006

Many of you didnot listen to me on Friday when told you to close all your profitable positions. Specially those of you who are in FNO. Take Care From Next Time. Buy following scripts for delivery:

Bata,
Patel Eng,
EKC,
Panama Petro,
Peninsula Land.

ONGC November 26, 2006

Last week’s weakness dragged the price to an intra-week low of Rs 829. We can expect the stock to remain in the range between Rs 830 and Rs 900 for a few more sessions. Such a move is conducive to the medium-term up trend.

Further long positions are not recommended in this stock unless there is a surge past Rs 900. Hold your longs with a stop at Rs 828. Failure to rally above Rs 890 next week can see the bears taking a firmer grip on this counter and a slide to Rs 810 or Rs 795 is possible.

Reliance Industries November 26, 2006

This stock moved according to our expectation and bounced off the support of Rs 1,236. RIL was under pressure last week and the weekly gain was a mere 2 points. Though, we continue to maintain that the medium-term trend in this stock is positive, there could be a little more down side in the short-term.

But, a close below Rs 1,250 is required to accentuate the short-term bearishness. A reversal from Rs 1,250 will make the price soar upwards towards Rs 1,288 and then Rs 1,316. Investors have nothing to worry as long as the stock stays above Rs 1,208.

Tata Steel November 26, 2006

Tata Steel managed to stay afloat last week, but just about. The chart reversed from a low of Rs 459 on Monday and managed a short-term rally from those levels. The short-term targets for this move are Rs 493 and then Rs 508.

We maintain our view that fresh longs should be initiated only on a close above Rs 510.

Though there are early signs of trend reversal visible on the chart it is not yet out of the woods. Failure to rise above Rs 493 will drag the price lower towards Rs 452 and then Rs 414.

Infosys November 26, 2006

There seems to be no stopping this stock.

Our short-term target of Rs 2,262 was achieved with ease as the price hit an intra-week high of Rs 2,270.

The short-term trend is sideways while the medium-term trend is firmly pointing upwards.

This stock is expected to push upwards towards Rs 2,278 and then Rs 2,355 in the short-term.

The support at Rs 2,130 stays. Hold your long positions with a stop at Rs 2,150. Fresh longs can be initiated for the short-term with the same stop.

Technicals at Toss with Fundamental!! November 21, 2006

One should check Tata Steel which is eshtablishing support in this area.

Bata also looks interesting.

Prithvi Information a mid-cap IT company can also be kept under radar.

Aegis Logistic has to be long term delight.

While Tech Mahi, INOX, Mahindra GESCO, Era, Bombay Dye, Century Tex can be a traders delight. Do keep all this stock under your watchlist.

Thanks,
Bhavin.

Query. November 12, 2006

What are the prospects of Wockhardt bought at Rs 390 and Dr Reddy’s Labs bought at Rs 742 for the next two months? Uday Padubidri

Wockhardt (Rs 411.7): This company is trying to claw its way out of the deep fall it witnessed in May 2006. The price is consolidating in the island between the 50-day and 200-day moving averages. There is long-term resistance at Rs 420. The price needs to close above Rs 420 for it to head higher towards Rs 440 or Rs 470. If the price turns down from these levels, it will spend the next few months consolidating in the range between Rs 320 and Rs 420. Book some profit at current levels and hold the rest with a stop at Rs 385.

Dr. Reddy’s Labs (Rs 788.9): This stock is moving in an upward moving channel since the June lows. The upper boundary of this channel is positioned at Rs 840. We need a strong close above Rs 850 to take the price to the former highs of Rs 877. The lower boundary is positioned at Rs 720, which would act as the base for any short-term correction. Long-term investors can hold on to this stock as long as the low of Rs 720 holds. Hold with a stop at Rs 700. Book profits if the price fails to clear Rs 828.

What is the short-term outlook for 3i infotech? Vishal Mehta, Ajith Thottupurkal

3i Infotech (Rs 184.9): 3i infotech has gained 50 per cent from its June low of Rs 125. The price has long-term resistance at Rs 190, from where the price is currently turning downwards. We have sell signals from the weekly charts, which denote a medium-term trend reversal. The short-term support level to watch out for is Rs 166. If the price consolidates above Rs 166, it can move higher to Rs 200 or Rs 220 over the next one year. Long-term investors can consider entering this stock if it consolidates above Rs 160.

Short-term investors can exit at if the price fails to cross the Rs 195 in the next few days.

I have bought Rolta India at Rs 220. Should I hold this share or sell it? Kamal Chand

Rolta India (Rs 236.6): The chart of Rolta (I) recorded a sharp upward move on Friday. A sideways consolidation is apparent in this stock since August 2006.

The price is currently stuck in a range between Rs 200 and Rs 235. Since this sideways move comes after a steep upward move, we can expect the stock to continue to move higher to Rs 270 or Rs 313 over the next one year. Hold the stock with a stop at Rs 195. Fresh buying can also be done in dips with the same stop.

I have bought FDC at Rs 43 and Tamil Nadu News Print at Rs 89. Can you analyse the prospects of these investments. Abraham, Yashpal Patil

FDC (Rs 39.6): This stock is in a severe down trend. The trend is weak on daily, weekly and monthly charts. The price will have difficulty rising above Rs 50 in the next one year. FDC has long-term support at Rs 34. That is where a long-term investor should keep his stop loss level.

Short-term investor can hold the stock with a stop at Rs 38. Some signs of life are evident on the daily chart. There can be a short-term rally to Rs 42, where you can exit this stock.

Tamil Nadu Newsprint (Rs 94): This stock is moving in a broad sideways range between Rs 80 and Rs 110 since June 2006. The short-term trend in this stock is weak. It is currently below its long-term averages.

Hold the stock with a strict stop at Rs 90. A recovery from here can take the price to Rs 103 or Rs 108 where you can contemplate exit.

Fall below Rs 90 will drag the price lower to Rs 86 or Rs 80.

I hold Hyderabad Industries at an average price of Rs 360. I am willing to hold on to this stock for the long-term (3 to 5 years). Can I add to my quantity at these levels? Or would it be wise to exit and re-enter later? Hemant Sreeraman, Narasimha Rao

Hyderabad Industries (Rs 295.7): Hyderabad Industries is in a long-term bear spell. The stock recorded a strong upward move last week.

But it will have difficulty rising above the zone between Rs 360 and Rs 370. Contemplate fresh additions only if the price records a weekly close above Rs 370. If the price has difficulty rising above Rs 350, exit this stock and re-enter later if the price breaks out above Rs 370.

Please give the support, long-term target and the price levels to buy into the following stocks — Aksh Optifibre and Champagne Indage. Sushil

Aksh Optifibre (Rs 45.7): Aksh Optifibre has long-term support in the zone between Rs 37 and Rs 40. Buying can be done in this zone with a stop at Rs 35 for long-term. Long-term targets are Rs 62 and then Rs 95.

Champagne Indage (Rs 450.1): This stock is already above its all-time high and is displaying considerable strength. Short-term investor can enter this scrip between Rs 410 and Rs 430.

Long-term investors can wait for a dip to Rs 330. The price can go on to Rs 600 in the long term.

Query Corner. October 8, 2006

I am holding 45 shares of BHEL. Please tell me the trend in this stock. Can I hold, sell or buy more? Bhattathiri

BHEL (Rs 2,324.9): Pure trend following methods are displaying absolutely no weakness in the short or long-term. But the need for caution arises from the price nearing its all-time high of Rs 2,465 hit in early May. E-wave targets for this rally are Rs 2,403, Rs 2,514 and then Rs 2,643. But we can have the price reversing from either of these levels. Hold the stock with a tight stop at Rs 2,200. Consider booking some profit between Rs 2,450 and Rs 2,500.

What are the prospects of Alembic and Munjal Showa purchased at Rs 370 and Rs 400 respectively? Charles

Alembic (Rs 67.3): The stock has recently undergone a 5:1 stock split and has been one of the stellar performers in the post-June rally. It has managed to recoup almost all the losses made in May crash. The price is reacting downward after hitting a peak of Rs 81 in late September. Short-term investors should exit this stock if it falls below Rs 65. Long-term investors can hold with a stop at Rs 60.

Munjal Showa (Rs 411.9): This stock is reacting after hitting a recent high of Rs 430.9 hit a couple of weeks ago. The price is in a short-term downtrend that can halt at Rs 376 or Rs 362. Exit at current levels if you are a short-term investor. Long-term investors can hold with a deeper stop at Rs 340.

What is the short- and long-term outlook for Bombay Dyeing and Kotak Mahindra Bank? Amit Kar

Bombay Dyeing (Rs 722.9): The scrip is in an intermediate-term uptrend since the low of Rs 395 made in June; it has gained 86 per cent from this low.

This intermediate-term rally faces strong resistance at the Rs 760 level, where it is halting now. We can expect some consolidation between Rs 760 and Rs 600 over the next few months.

Long-term investors can hold the stock with a stop at Rs 600. Short-term investors can book some profits here and hold the rest with a stop at Rs 690.

Kotak Mahindra Bank (Rs 330.9): This stock is moving in the range between Rs 300 and Rs 350 since the middle of August.

Since this sideways move comes after a strong rally from the low of Rs 210, it is can be considered positive as long as the price stays above Rs 280.

Short-term investors can hold this stock with a stop at Rs 280. The short- and long-term targets for this stock are Rs 386 and Rs 437 respectively.

What are the long- and short-term supports and targets for Sunil Hitech? Ramesh, Valli Kasi

Sunil Hitech (Rs 114.6): This stock has lost 55 per cent from the peak of Rs 167 hit in May. The recovery from the June low has not been convincing.

There is short-term resistance at Rs 115. If the stock fails to overcome this, we can expect some sideways movement between Rs 115 and Rs 75 for the next three to six months. A breakout beyond Rs 115 is required to take the price to Rs 138. Hold the stock with a stop at Rs 92.

I am holding Aftek Infosys bought at the rate of Rs 80. Can you advise me whether I should hold this stock or come out of it? B.V. Chandrasekaran

Aftek Infosys (Rs 59): This stock is not showing any signs of strength over the medium term.

There was a recovery from the lows of Rs 39 in June but the price is unable to rally above the short- term resistance at Rs 65. If this rally continues, there can be a rally to the Rs 75-80 level.

This is expected to be the upper limit in the next one year. Investors are advised to exit the stock on any rally and hold the stock till then with a stop at Rs 48.

What is the outlook for SpiceJet? Ganesh V., Ritu Grover

SpiceJet (Rs 46.2): The scrip has lost 60 per cent from the high of Rs 115 touched in September 2005.

The price is moving in a sideways range between Rs 35 and Rs 55 since June. The price will have difficulty breaking out of this range in the short term.

If the price breaks past Rs 55, it can rise to the zone between Rs 60 and Rs 65.

Exit the stock if it fails to overcome the resistance at Rs 65 over the next one year. Till then, hold with a stop at Rs 37.

What should I do with Mercator Lines purchased at Rs 56? Should I average or just hold? Anil Kumar K.

Mercator Lines (Rs 41.8): This stock has been in a downtrend ever since January when it touched a high of Rs 63.9.

The recovery from the August low of Rs 27 has been quite good. There is resistance at Rs 45 and then at Rs 50 in the short term.

The price will have difficulty breaching Rs 50 over the next few months. So, short-term investors can exit at these levels.

A firm breakout beyond Rs 50 is required to take the price to Rs 64 again.

Long-term investors can hold with a stop at Rs 38.

Trend Reversal Due!!! October 2, 2006

There isn’t much breadth in the market due to a lack of retail participation – the Diwali/post Diwali period normally features thin trading and net losses.

Settlement week went through net gains though the market breadth was thin. The Nifty closed up by 1.25 per cent at 3588.4 points. The Sensex was up 1.78 per cent, closing at 12454.42 points. The Defty rose 1.18 per cent as the rupee slid slightly.

Breadth signals were mildly negative by the weekend and volumes were average for a settlement week. The broad BSE 500 did outperform the Nifty however, by rising 2.19 per cent and the BankNifty shot up by 6.92 per cent. There was heavy mutual fund and FII buying through the week.

Outlook
There’s strong resistance at the 3600-Nifty level. Momentum indicators are still positive, but barely so. The Nifty could breach 3600, but it’s likely to top out somewhere between 3600-3650. After that, we could expect an intermediate correction that causes a 5-10 per cent pullback.

Rationale
We have seen net gains over the past 13 weeks and gains for 10 straight weeks running. The intermediate trend must have matured if the inability to penetrate resistance at 3600 is a valid signal.

The market must be due for an intermediate trend reversal, which could lead to a dip back down to 3315 levels. There isn’t much breadth in the market due to a lack of retail participation – the Diwali/post Diwali period normally features thin trading and net losses.

Counter-view
Through the past three years, the market has consistently managed to extend the uptrend beyond normal timeframes. The good GDP numbers and the dip in crude prices may provide a trigger for further gains along with the relief in the PAN card issue.

Bulls & Bears
The big sectorial gainer was banking though there was a sell off on Friday. There was a massive spurt in stocks such as Andhra Bank, HDFC Bank, ICICI, PNB, Corporation Bank, Oriental, Syndicate Bank, SBI and Vijaya Bank.

Give the sell off on Friday, there could be a further correction early next week but the sector looks clearly bullish in the context of the next 10 sessions.

Other financial stocks such as HDFC and LIC Housing also did well. Auto stocks such as Bajaj, Mahindra, Maruti also looked good. The trigger is probably the festive season discounts and rate cuts, which could boost volumes – this logic certainly came into play wiuth the banks.

Apart from these, ACC and Grasim looked strong and so did the Tata flagships of Tata Chemicals, Tata Steel and Tata Power. There was scattered investment in Sail, GE Shipping and NDTV. Energy and refining PSUs such as BPCL, HPCL and Gail saw dips.

Micro Technicals:

Bajaj Auto
Current Price: 2996
Target Price: 3150
——————————————————————————–

The stock has completed a breakout by moving past 2970 with some volume expansion. It has a likely target of 3150.

Keep a stop at 2970 and go long. The long-term target is in the region of 3500 so, it may be worth averaging up and taking delivery of some quantity with 6-10 week perspective.

GE Shipping
Current Price: 309
Target Price: 330
——————————————————————————–

A breakout was completed on high volumes when GE Shiping closed above 300 on Friday. It has a likely target of 330 and it could move further since the weekly price pattern suggests that a target of 360 is achievable. Keep a stop at 300 and go long.

HDFC
Current Price: 1533
Target Price: 1620
——————————————————————————–

HDFC started a breakout early last week with a big volume expansion as it closed above a strong resistance at 1420. It has a minimum target of 1620 so the move is quite extended. Keep a stop at 1520 and go long.

On the downside, if 1520 is broken, it will find the next reliable support at 1475. So you could consider shorting on an intra-day correction using 1520 as a pivot level.

NDTV
Current Price: 220
Target Price: 245
——————————————————————————–

The stock saw a strong volume expansion on Friday combined to a small uptick in the price. It has a likely target of 245 if it can overcome resistance between 220-225. Keep a stop at 214 and go long.

Tata Power
Current Price: 567.85
Target Price: 560
——————————————————————————–

The stock has risen steadily on an excellent volume expansion. It is hitting resistance at current levels biut the move has a likely target of 595. It could go further if the volume expansion is sustained. Keep a stop at 560 and go long.

(The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.)

Your Query. October 2, 2006

Is it the right time to buy the shares of Gateway Distriparks and Bharat Earth Movers? What are their short term and long-term prospects? Amirthalingam

Bharat Earth Movers (Rs. 936.2): BEML has long-term support at Rs 750. The stock bounced off this support in June 2006. Since then, the price has been moving in a sideways range between Rs 800 and Rs 1,000. This could be a long drawn consolidation phase before the price breaks out on the upper side.

There has been a pick-up in volume on this counter since August 2006, which is a very positive sign. We recommend accumulating this stock in the range between Rs 800 and Rs 900 with a stop at Rs 750. Medium term targets on the upside are Rs 1,200 and then Rs 1,400.

Gateway Distriparks (Rs 164.2): This stock has been in a vicious down trend since January 2006. The bounce back in June 2006 from Rs 144 to Rs 232 has been entirely reversed in the subsequent fall. The immediate support for the stock is at Rs 145. If this support is breached, it can fall to Rs 130. The trend in this stock is extremely weak. Do not try to bottom fish here. Buying is recommended in this stock only on a close above Rs 195.

What are the prospects of Shri Digvijay Cement bought between Rs 30 and Rs 35? Kamlesh, Vijay Jain

Shri Digvijay Cement (Rs 33.3): Shri Digvijay Cement has already gained 68 per cent from the low of Rs 21.4 touched in July 2006. The price is consolidating between Rs 31 and Rs 36 over the last two weeks. This consolidation phase has been accompanied by a surge in volumes. Hold the stock with a stop at Rs 30. The upward targets on a breakout above Rs 36 are Rs 38 and then Rs 41. Fresh positions in this stock can also be considered for trading purpose with a stop at Rs 30.

I am holder of Omax Auto bought at Rs 97.15. What should I do with this stock? Philip T.A., C. Rathinasabapathy

Omax Auto (Rs 102.2): Omax Auto has taken a steep cut since January 2006, losing a steep 67 per cent from its peak of Rs 174. The recovery from the June lows has been gradual and appears promising. This stock faces short-term resistance in the zone between Rs 112 and Rs 115. If this zone is surpassed, there can be a rally to Rs 128. Hold with a stop at Rs 90.

Please suggest some good books for beginners in technical study and day trading. Pankaj Mahajan, Raashid, Nirmal Jeet, Shailendra Awasthi

Those desiring to learn technical analysis can begin their study with the following books: `Technical Analysis from A to Z’ by Steven B. Achelis; `Candle Stick Charting’ explained by Gregory L. Morris; Martin Pring on `Market Momentum’, and `Elliott Wave Explained’ by Robert C. Beckman. Books on day trading are: `A Beginner’s Guide to Day Trading Online’ and `A Beginner’s Guide to short term trading’ by Toni Turner.

I am holding the shares of Deccan Aviation. What is the short-term prospect for this stock? Should I hold it or book loss? Chaudhuri R, J. Bhaskar Patnaik

Deccan Aviation (Rs 102.8): Deccan Aviation has seen a sharp spurt in September 2006. The stock is currently moving sideways after hitting a high of Rs 121 on September 14th. The price has support at Rs 99 and then at Rs 85. Short-term resistance is at Rs 116. Exit this stock if it fails to rise above Rs 116. If it closes above Rs 116, it can rise to Rs 131. Stop can be placed at Rs 98.

What are the short and long-term targets for Alstom Projects and Honeywell Automation? I hold 150 shares in each. Pinto Jain

Alstom Project (Rs 350.8): Alstom Projects broke out last week with very good volumes. The break out has come after a long drawn consolidation phase that has been on for about a month. The stock will face some resistance in the zone between Rs 350 and Rs 360. Once this zone is surpassed, there can be a rally to Rs 404 and then Rs 421. Hold with a stop at Rs 327. Fresh buying can also be done with the same stop.

Honeywell Automation (Rs 1,520.4): The short term and the medium term trend for this stock are up. The price is moving in an upward moving channel since August 2006. Some resistance exists in the zone between Rs 1,500 and Rs 1,550. If this zone is crossed, the price can rally to Rs 1,620 and then Rs 1,675. Hold with a stop at Rs 1,380.

I am holding 600 shares of Prism Cements bought at the rate of Rs 25, for the last one year. Can I sell these shares now at the rate of Rs 40? Murali Mohan. N

Prism Cements (Rs 41.5): This stock has been recording successive higher peaks and troughs in the upward move since the low of Rs 25 recorded in July 2006. It would be best to hold this stock with a trailing stop of 20 per cent from the most recent peak and ride this upward move. The upward target over the next two months is Rs 48.

I hold shares of IVRCL. What are the long term and short term supports and targets? U.K. Aravind Kumar, Sunny Chandigarh

IVRCL (Rs 253.6): This stock has moved up strongly from a low of Rs 164 made in July 2006 to the recent high of Rs 265 recorded on September 8th. The price is consolidating sideways since then. IVRCL has the support at Rs 225 and then at Rs 205 in the immediate future.

The short-term outlook for this stock is positive and we expect it to move higher to Rs 296 and then to Rs 335 in the short term. Hold the stock with a stop at Rs 220. Long-term support for this stock exists at Rs 200 and the long-term target on the upside is at Rs 420.

What are the prospects of Tulip IT and ABG Shipyard? Ramachandran, Vivek Rewari

Tulip IT (Rs 330.4): Tulip IT broke out with good volume last Monday. The short-term support for the price would be at Rs 297. The upward momentum would continue in the short term as long as the price stays above Rs 297.

Short-term investors can hold with a stop at Rs 296. Long-term investors can keep a deeper stop at Rs 250. Long-term targets on the upside are Rs 405 and then Rs 462.

ABG Shipyard (Rs 276.8): This stock managed to rise from the low of Rs 199 in July 2006 to the present level. But the momentum is slowing down in the short term as well as the medium term.

There is stiff resistance at Rs 285, which the price is struggling to overcome. Once this level is overcome, there can be a rally to Rs 310. Exit this stock if the price falls below Rs 250.

Can you please outline the prospects of Wipro and MaxIndia? Vivek Bhatia, Anand Shankar

Max India (Rs 800.5): This stock too has picked up momentum in the last one week. The short-term resistance is around Rs 800. If this level is crossed, the price can rise to Rs 835 or Rs 890. If you are a short-term investor, then hold the stock with a stop at Rs 753. Long-term investors can keep a deeper stop at Rs 675.

Wipro (Rs 525.1): The medium term outlook for Wipro is positive. This stock is moving sideways in an upward moving channel since August 2006 in a bullish formation.

The price has the potential to move up to Rs 568 and then to Rs 580 in the short term. Short-term investors can keep a stop at Rs 495 and hold the stock. Some profit booking can be done in the zone between Rs 560 and Rs 580.

I would like to know whether the prices of Ranbaxy & Orchid Chemicals can cross the Rs 500 and Rs 300 barriers in the near future. V.S. Krishnamurthy

Ranbaxy (Rs 439.8): Ranbaxy has been consolidating in a sideways band between Rs 390 and Rs 420 since the beginning of September 2006. Momentum is returning to the short-term. The only concern in this counter is a lack of volumes.

Short-term targets on the upper side are Rs 450 and then Rs 482. There will be stiff resistance in the zone between Rs 450 and Rs 480.

Some profit can be booked here if the price struggles to rally past this level. Supports for the short term are at Rs 406 and then at Rs 400.

Orchid Chemicals (Rs 208.5): Orchid Chemicals has been moving sideways in a band between Rs 200 and Rs 220 since August 16.

If the price manages to get past Rs 220, it will face resistance at Rs 255.

The price might not go beyond Rs 300 in a hurry.

Kindly suggest the short term and long-term prospects of Bajaj Hindusthan. I have purchased 250 shares at the price of Rs 330. G. Rajendiran

Bajaj Hindusthan (Rs 324.5): The long term and medium term trend is down in this stock. Long-term support for this stock exists at Rs 290 and then at Rs 230. Price has short-term resistance at Rs 345.

This level needs to be crossed for the price to proceed towards Rs 386. Exit this stock around Rs 380 if you are a short-term investor. Long-term investor can hold the stock with a stop at Rs 285. Fresh purchases can also be initiated for long term with the same stop.

Index View. September 24, 2006

Sensex (12236.7)

Indian markets are in an indefatigable mood. Though the Sensex grappled with the psychological resistance at 12000 in the first half of the week, it went on to end the week with a gain of 1.8 per cent.

A parallel can be drawn between the rise in the Sensex since the recent low of 9875 and the rise witnessed from the low of 7656 in October 2005. Both rallies are marked by shallow corrections that did not exceed 38.2 per cent of the previous moves, the short-term momentum indicators diverged negatively and large build-up of short positions by FIIs and traders helped to sustain the rally. The lesson to be learnt here: do not short the market before a peak is confirmed.

As we near the expiry of the September contracts in the derivatives segment, the Sensex is expected to remain volatile as the large build-up in open interest gets unwound or rolled over.

The third leg of the upward move from the low of 8800 in the Sensex has successfully crossed its second target of 12015. As we have been reiterating, the entire rally from the low of 8800 is the B wave or a pullback of the fall from 12671. The B wave can go all the way to the beginning of the A wave (12671) or even further.

If we consider the minor counts of the move since the low of 9875 in the Sensex, a zigzag formation was completed at 11551. There was a x wave after this move that terminated at 11297. We had expected a flat formation from 11297 that would end around 12150. But the move past 12200 leads us to believe that the Sensex could be charting a triangle from the low of 11297. This could be the terminal corrective formation that can take the markets higher but with increasing bouts of instability.

To put it simply, the Sensex is expected to move higher, but volatility will increase as the index nears the previous high. The Sensex can move higher to 12455 and then to 12556 this week. The positive outlook for the short term will reverse only if the Sensex falls below 12000.

Traders can play long with tight stops. Investors should remain stock-specific and buying should be done with a long-term perspective only. It would be best to avoid frontline stocks that have run up steeply in the last two months. Switching part of your portfolio to low-risk fixed return investments is also a good strategy at this juncture.

Nifty (3544)

The Nifty surpassed the resistance at 3500 last week to touch an intra-week high of 3562.4. It closed the week with a gain of 1.8 per cent. The Nifty breached the 3520 level, which we had expected would terminate the current rally. The revised counts for the Nifty are same as that presented for the Sensex. The short-term outlook for the Nifty would stay positive as long as it stays above 3473. Traders can play long on the Nifty with a stop at 3470. The upper targets this week are 3585 and then 3605.

BSE Midcap Index (5043.8)

It was a range-bound week for the BSE Midcap index. This index closed with a loss of 0.5 per cent for the week. The short- and medium-term outlook for this index are, however, positive. The chart is moving sideways is what seems like a consolidation move just above its long-term moving average. The index can move higher to 5093 or 5196 in the short term. The outlook will stay positive till the index stays above 4822.

Your Query. September 24, 2006

Please let me know the short- and long-term prospects for Voltas. Keshav

Voltas (Rs 111.1): The stock slipped from a high of Rs 111 in May to touch a low of Rs 63.5 in July. The price is once more nudging this May high.

There has been a pick-up in volumes over the last four weeks, as the price is moving sideways with an upward bias in this period.

The price can continue to move sideways in the band between Rs 95 and Rs 110 in the short term.

Short-term investors can book partial profits at current levels and hold the rest with a stop at Rs 95.

Long-term investors can wait for a dip to Rs 85 levels before taking exposure. The stock’s long-term target is Rs 123.

What are the short- and medium-term prospects of Patel Engineering? Hrishikesh Phadake, Sundar S, P. Vijayalakshmi

Patel Engineering (Rs 329.4): This stock is consolidating in a band between Rs 300 to Rs 350 since the middle of August. The medium-term outlook for this stock is positive, as chart patterns suggest that there can be a breakout on the upside.

The volumes over the last four months have also been encouraging. The immediate resistance is at Rs 380.

If this level is surpassed, there can be a rise to Rs 401 or Rs 451 over the next few months. Hold the stock with a stop at Rs 300.

What are the prospects of Jayshree Tea and Tata Tea? G. P. Dube, Pankaj Agarwal, Aboobacker Ziddhique, T. K. Hamza

Jayshree Tea (Rs 135.7): The stock is showing a good recovery from the low of Rs 91 hit in July. There was a surge in volumes in February and March when the price hit an all-time high of Rs 207.

The volume has petered off since. This is a negative for the stock, as sellers will emerge to curtail every rally. For the short term, the pattern is bullish.We can have a rally to Rs 160 or Rs 172, where exit is recommended. Till then, hold with a stop at Rs 126.

Tata Tea (Rs 742.7): The long-term uptrend is still intact. The price bounced off the long-term support of Rs 560 in June. The long-term targets on the upside are Rs 970 and then Rs 1,207.

Long- term investors can hold the stock with a stop at Rs 500.

However, this stock is exhibiting weakness over the medium term. The slide can halt at Rs 679 or Rs 628, which will be a good place where investors can enter this stock. Do not buy the stock below Rs 628 as, in that event, a slide to Rs 550 will be possible.

I want to know the long-term outlook of Exide Industries and Kajaria Ceramics? Syed, N.S. Kumar, Charles

Exide Industries (Rs 40.6): This stock has had a dream run since July, running up from a low of Rs 22.2 to a high of Rs 49.2 in September, gaining 121 per cent.

The spurt in prices in September has been accompanied by increase in volumes. A sideways consolidation between Rs 38 and Rs 49 will be good for the long-term trend.

The stock can then move higher past Rs 49 to Rs 59. Hold the stock with a stop at Rs 36. Fresh buying on dips can be contemplated with the same stop.

Kajaria Ceramics (Rs 60.3): This is another stock that has registered a steep rise over the last two weeks.

The chart has long-term resistance at Rs 56. But the price is currently above this level.

Investors can use this as a stop loss for holding this stock. Fresh buying can also be done with the same stop. Long-term targets for this stock are Rs 68 and then Rs 78.

Kindly suggest the short- and long-term prospects of Reliance Energy purchased at Rs 420 per share and of Reliance Natural Resources purchased at Rs 31 per share. Dany, Ravindra Singh

Reliance Energy (Rs 462.6): This stock is consolidating in a sideways band between Rs 400 and Rs 500 since July. As this sideways move comes after the stock has rallied upward from its long-term support of Rs 400, it can be construed as an accumulation phase.

Long-term investors can accumulate this stock between Rs 400 and Rs 500. Short-term targets on the upside are Rs 524 and then Rs 545.

If Rs 545 is crossed, there can be a rally to Rs 570. Investors already holding the stock can continue to do so with a stop at Rs 390.

Reliance Natural Resources (Rs 23): The stock has been moving in a band between Rs 18 and Rs 25 since June. We need to see a close above Rs 25 before the price can move higher to the next target of Rs 27.

Short-term investors can exit this stock if the price fails to rise past Rs 27.

The price would face difficulty in going past Rs 32 over the next year. Hold with a stop at Rs 19 and exit on any rally to the aforementioned levels.

I am holding 150 shares of Indiabulls at Rs 330. What is the outlook for this company? Suresh Kumar Yadav

Indiabulls (Rs 401.9): This stock was moving in an upward moving channel since 2004. The price has broken out above the upper boundary of this channel last week.

The short-term support is at Rs 420. The price breached this support on Friday. Book some profits here and hold the rest with a stop at Rs 380.

Query Corner. September 17, 2006

What should I do with Petronet LNG purchased at Rs 61? Should I purchase some more or just hold? S. V. Shanbhaug, Sasi Kumar, R. Kalyanasundaram

Petronet LNG (Rs 49): The stock has halted exactly at the long-term support of Rs 36 made in June and has gained 44 per cent since. The stock is currently facing resistance at Rs 52, which is 50 per cent retracement of the fall from the peak of Rs 68 made in May. The Rs 52-level needs to be crossed before the price can progress towards Rs 56. The price can move in a band between Rs 36 and Rs 56 over the next one year. Hold with a stop at Rs 30 if you are a long-term investor. Exit near the upper boundary of the range if you are a short-term investor.

I have two demat accounts. One is like a fixed deposit and another demat account is used for daily routine trading. Am I correct? Please advice. Mahesh

I hope you mean that you have reserved one demat account for the sole purpose of keeping long-term investments and another for holding the shares being held for trading purpose. Demat accounts cannot be compared to fixed deposits as the former do not earn any revenue. The shares held for the long term and short term can be held in one demat account. Having two demat accounts is not really necessary as it will only double your annual demat account cost.

What are the short-term and medium-term prospects of Syndicate Bank and Allahabad Bank? M. Guhan, J.C. Virani

Syndicate Bank (Rs 76.4): The stock has had a spectacular run from the low of Rs 47 it touched in July. For the short term, the price is facing resistance from its long-term moving average positioned at Rs 79. The price will have difficulty rising above Rs 83 in the short term as the run-up has already been so sharp. Short-term investors can book profits at current level.

The medium-term prospects are, however, good for this stock. We can expect the stock to move between Rs 65 and Rs 80 in the medium term. Use dips to buy into this stock with a stop at Rs 60.

Allahabad Bank (Rs 81.1): This stock, too, has had a strong run since the low of Rs 53 hit in July. The price has short-term targets of Rs 80 and then Rs 86. The medium-term outlook continues to be bright for this stock. Medium-term support would be at Rs 62. Buy on dips with a stop at Rs 60.

At what rate should Titan be purchased? Kanchan Garg, R. Parrivel Saravanan

Titan (Rs 790.9): The study of the volume on this counter throws up some interesting observations.

The volumes were at the highest between September 2005 and March this year.

The price was in a band between Rs 650 and Rs 895 during this time. The subsequent fall and recovery has been accompanied by low volumes. The inference is that the price will face resistance at its previous peak of Rs 895. If this peak is crossed, the price can go on to Rs 1,000 or even Rs 1,300. Buy this stock if there is a dip to the Rs 680-720 zone.

I am having positions in TCS at an average rate of Rs 900. What should I do? Can you give me the medium- and long-term targets for TCS and L&T? Nita Bhatija, Bikramaditya Roy

TCS (Rs 1,003.1): The stock is moving in an upward moving channel since July. The upper boundary of this channel is positioned at Rs 1,050. As the previous all-time high is also positioned at Rs 1,050, this is the target for the short term.

Short-term investors can book partial profit at these levels. A strong breakout beyond Rs 1,050 is required to propel the price to Rs 1,200.

The stock is expected to move in a broad range between Rs 850 and Rs 1,050 over the medium term. As your average cost is Rs 900, hold the stock with a stop at Rs 840. You can accumulate on dips with the same stop.

L&T (Rs 2,639.9): This stock has a strong correlation with the Sensex. Now that this stock has been included in the derivatives segment on the NSE, the correlation is expected to get stronger.

The wave pattern on the chart is identical to that found on the Sensex. The short-term target is Rs 2,728 and the medium-term target is Rs 2,915. Short-term support lies at Rs 2,300.

A fall below Rs 2,300 will drag the price to Rs 2,100. Investors can look out buying opportunity if the stock falls to the zone between Rs 2,300 and Rs 2,100.

Let me have your view on future prospects of Maruti purchased at Rs 879. I am a long-term investor. Rama Gopal K.V.

Maruti (Rs 949.2): The stock has regained almost all the territory it lost in May and June. Some upheaval can be expected as the price nears its previous high of Rs 974. The price will find support at Rs 800 over the long term. Only if this level is breached, will there be a fall to the July low of Rs 691. The stock can move in a broad band between Rs 750 and Rs 1,000 over the next year. Long-term investors should accumulate this stock near the lower boundary.

I request you to advice me on Saurashtra Cements bought at an average rate of Rs 76 and SRF bought at an average rate of Rs 322. Should I hold these shares? What are their prospects over the next nine-12 months? Rajesh G. Wadhwa

Saurashtra Cement (Rs 72.8): This chart is moving in an upward moving channel since the low of Rs 37 hit in mid June. Projecting this channel gives us a short-term target of Rs 85. This rally will face stiff resistance between Rs 80 and Rs 85. Exit in this zone if you are a short-term investor. If you are a long-term investor, hold with a stop at Rs 60.

SRF (Rs 239.5): The stock has moved up smartly from the June low of Rs 136. The price has been consolidating in a narrow band between Rs 230 and Rs 260 over the short term, which looks like a positive consolidation phase.

The target on a breakout is Rs 310 and then Rs 348 for the medium term. Hold with a stop at Rs 210 and try to exit near your cost price.

Open interest is indeed a maze. While I do understand the basics of open interest in common parlance, but when it comes to tracking intra-day movement of open interest vis-à-vis volume traded in the same future counter, it is confusing.

Take the counter – Jet airways September 6 future, which recorded a huge volume of 40.50-lakh shares on September 8, whereas change in open interest was merely 1.19-lakh shares. Even intra day, maximum change was just 3-lakh shares. My question is — on such eventful days change in open interest should be substantial, as speculators keep both long and short positions and therefore intra-day open interest should swing from one end to the other. On the contrary, change in open interest remains at dismally low levels. Can you please explain the rationale of this phenomenon? Srinivasan. K

It would be difficult to correlate the movement in volume to the movement in the open interest.

Volume at a particular point during the trading day would be a cumulative figure traded up to that point whereas the open interest would be the outstanding positions in the futures segment at any given time. If any future contract is squared up, it will not figure in the open interest, whereas it would be counted in the volume.

The example you are quoting of the movement of the Jet Airways share on September 8 is an interesting one.

The lack of significant change in the open interest means that the volume comprised entirely of intra-day trades based on the news. As the news that made the price move (rumours that a group of 1,000-odd travel agents had come together to buy a 30-per cent stake in Air Sahara for Rs 700 crore) was so absurd, no one was willing to rollover their position to the next day or even to keep their positions open for a prolonged period during the trading day. Monitoring open interest in such a day would give us pointers towards the credibility of the news that spurs price movement.

What are the prospects of JK Cement purchased at Rs 172 per share? Sunny, Chandigarh

JK Cement (Rs 195.4): This stock is just breaking out from a long-drawn consolidation phase that has prolonged since mid August. The target over the next six months is Rs 211 and then Rs 229. You can keep a stop at Rs 160 and hold the stock.

What are the short-term and long-term targets for Zee &Rolta? Dr Naiyar Alam, Rehan Azim, RoomiRehan, Alisha Shiakh, J. Saravanan

Zee Telefilms (Rs 319.5): Zee Telefilms has resumed the long term up trend that took off from a low of Rs 60 in April 2003.

The stock is currently above its May 2006 high of Rs 306. The long-term target for Zee Telefilms is 435.

Short-term target would be Rs 341 and then Rs 365. Buy in dips as long as the stock stays above Rs 250.

Rolta India (Rs 206.8): The stock has the short-term target of Rs 233 and a long-term target of Rs 285. Hold the stock with a stop at Rs 191.

Your Queries. September 10, 2006

TVS Motors (Rs 116.5): The long- term trend is still up. Long-term support exists in the zone between Rs 75 and Rs 80. This zone will act as a good support if the price slides again over the next one year. Investors can hold this stock with a stop at Rs 70.

For the short term, the price has broken out upwards accompanied by good volumes. Immediate resistance exists at Rs 120, where the price has halted. If Rs 120 is crossed, price can rise to Rs 133 or Rs 145. But, since the stock is currently overbought, wait for a dip to the zone between Rs 95 and Rs 105 before buying this stock.

What are the short-term and long-term targets for Ashok Leyland? D. Nanjundan, Vijendar Bhardwaj, M.N. Prabhu Shankar, T. Vinod Kumar, Prakash Sanghvi, Surojit Roy.

Ashok Leyland (Rs 43.3):

Ashok Leyland saw a steep move upward from a low of Rs 29.5 in January 2006 to a high of Rs 53.9 in May 2006. This entire run-up has been corrected in the subsequent crash. Long-term support exists at Rs 30, where the price has made a double bottom. There is another reliable support just underneath at Rs 26. Long-term investors can keep Rs 25, as a stop and hold this stock.

For the short-term, however, caution is necessary. The price has already retraced 61.8 per cent of the fall since the May 2006 highs. The Rs 45 level will act as a crucial resistance for the next one year. We can expect a dip to Rs 39 or Rs 36 levels in the short term. The ideal place for buying again, for trading purpose, would be between Rs 36 and Rs 38.

I brought Financial Technologies at average price of Rs 1,120. Please let me know its prospects for six months to one year time horizon. Sudhir Patil.

Financial Technologies (Rs 1,480.6):

The slide in May halted at the long-term support of Rs 1,050 in Financial Technologies. Since, this is a 50 per cent correction from its May 2006 peak, this level is not likely to be breached any time soon.

A broad based sideways move between Rs 900 and Rs 1,700 is the most likely scenario for the next two years. Long-term investors can accumulate the stock between Rs 900 and Rs 1,100.

The short-term trend is currently up. The stock consolidated in a band between Rs 950 and Rs 1,250 since 15th June before breaking out last week. The upward targets for the short term are Rs 1,640 and then Rs 1,800. Short-term investors can exit at either of these levels.

What are the prospects of Balrampur Chini purchased at higher prices? Sanjay Wadhwa, Ramawatar, Surojit Roy, P. Ravikumar, S.V.V.S.Prasad, Vimal Bhatia, Prabhu Kumar, Satish Vohra

Balrampur Chini (Rs 98.8)

The long-term support exists at Rs 85. Price has halted above this support. Since, the fall since May has been very steep, selling is coming in at every rally.

The interesting point to note on this counter is the pick up in volumes since August 2006.

We have evidence of accumulation taking place at these levels.

Those who already hold the stock can keep a stop at Rs 78 and continue to hold. Long-term investors can take a contrarian call and accumulate this stock between Rs 85 and Rs 100 with the same stop.

The price will, however, face tremendous resistance from Rs 130 level in the medium term. This level needs to be breached for the price to rise to Rs 160.

Can you outline the prospects of REI Agro for the short & long term? Himanshu Pandit, Suresh Kumar Yadav, Boney Jose

REI Agro (Rs. 119.7):

This stock has been in a downtrend since November 2005. It had knocked off 73 per cent from its peak when it finally bottomed in June 2006.

There has been a good rally from the June low of Rs 58.9. Spike up in volumes on this counter over the last two months is also a positive sign as far as long term is concerned. Long-term investors should hold this stock with a stop at Rs 55. Upward target for the short term are Rs 140 and then Rs 158. Short-term investors can exit at either of these levels if the price falters.

What are the short term and long term prospects of Unitech? Suresh Kumar Yadav, Sridharan, Murugappan, Poothathan Rajendran

Unitech (Rs 239.3):

Unitech is an extremely volatile stock. The long-term support for the price exists at Rs 155.

Investors can hold this stock with a stop at Rs 150. The short-term trend is up and we saw the return of momentum on this counter last week.

The rise in price was also accompanied by a spurt in volumes, which is positive sign. However, there is a strong resistance at Rs 250.

Short-term traders can book profits at current levels if the price fails to overcome this resistance.

A strong breakout above Rs 250 is required to propel this stock towards it May high of Rs 303.9.

Can you please tell me the outlook of McDowell bought at Rs. 451? Vivek Bhatia, Ramawatar

McDowell Co (Rs 634.9):

The crash in the price of McDowell in May 2006 halted at the long- term support at Rs 370. The rally since then has been quite convincing and we seem to have formed a long term low at Rs 370.

Long-term investors can hold this stock with a stop at Rs 360. Short-term targets for the price are Rs 690 and then Rs 800. Traders can buy in dips with a stop at Rs. 500.

Query Cornered. September 3, 2006

Please tell me the future of Gitanjali Gems, which I purchased at Rs 190 and JP Hydro purchased at Rs 34. Shekhar Chopra, Port Blair.

Gitanjali Gems (Rs 196.8): The chart is showing good momentum since the bottom formed in the beginning of August 2006. The stock has the short-term target between Rs 220 and Rs 230. If this level is crossed, the price can go on to the previous high of Rs 270. Hold the stock with a trailing stop-loss of Rs 20 from the most recent peak to take advantage of this rally.

J. P. Hydro (Rs 28): JP Hydro has not been able to recover with any great conviction from the hit it took in May 2006. The price is moving sideways between Rs 21 and Rs 28 since early June. Price will face resistance at Rs 29 and then at Rs 33. Exit at Rs 29 if the price is unable to overcome this resistance level.

I would appreciate your view on Andhra Petrochemicals and Nagarjuna Fertilizers (long term view). Akshaya

Andhra Petrochemicals (Rs 11.4): The Andhra Petrochemicals stock has started moving up since August 2006.

A long-term low seems to have been formed at Rs 7.2 in mid June. The long-term resistance for the price exists at Rs 16. This level needs to be crossed for the price to rally to the previous high of Rs 21. Hold the stock with stop-loss at Rs 7.

Nagarjuna Fertilizers (Rs 12.1): The long-term bull run that began in 2003 has ended in this stock.

However, the slide in the prices of Nagarjuna Ferlilizers has halted near its long-term support at Rs 10.

Hold the stock with a stop-loss at Rs 9. The price can rise to Rs 13.5 and then to Rs 16 over the next one year. Exit can be considered at either of these levels.

I want to know the long-term outlook of Hindustan Construction Company purchased at Rs 176 during March 2006. Is there any sign of recovery? Should I hold or book loss at current levels? Kanchana Srinivasan

Hindustan Construction Company (Rs 108.4): This stock rose from a low of Rs 81 in October 2005 to a high of Rs 196 in March 2006.

The slide since May 2006 has now stopped at Rs 82 and we are seeing a fight back in the price. Good volumes have accompanied the rally since July 2006, which is a positive sign.

You can hold this stock for long term (more than one year) with a stop-loss at Rs 75.

Please advice on the prospects of IDFC (Rs 64.32) and Micro Technologies (Rs 158.06) in a medium-term perspective. Sreejith Menon

IDFC (Rs 59.8): The IDFC stock has had a strong upward move since hitting a low of Rs 44 on July 24. The medium-term prospects of IDFC look good. The immediate resistance for the price is at Rs 65. If this level is crossed, then there can be a rise to the former peak of Rs 78 or beyond. Hold the stock for the medium-term with a stop-loss at Rs 50.

Micro Technologies (Rs 202.4): The price of Micro Technologies is turning down from its immediate resistance of Rs 220.

Hold the stock with a stop-loss at Rs 175 for the medium-term. The target beyond Rs 220 falls at Rs 260.

Should I buy Grasim Industries at current prices? G.P. Dube

Grasim (Rs 2,252.9): The chart of Grasim has been moving sideways with an upward bias since the beginning of August 2006.

The short-term formation indicates inherent strength. Buy at current levels with a stop-loss at Rs 2,170 if you are a trader. Investors should wait for a dip to Rs 1,950 or Rs 1,820 before entering this stock.

Please advise whether I can hold Bongaigaon Refineries purchased at the rate of Rs 99.9. S.Hemachitra

Bongaigaon Refineries (Rs 56.9): The price of Bongaigaon refineries has bounced off its long-term support at Rs 44. You can hold the stock with a stop-loss at Rs 40. This level should support the price in case of a sharp slide in prices. For the next one year, the price will have difficulty rising above Rs 79. This level needs to be crossed if the price has to rally to its previous high of Rs 107.

Kindly, let me know the prospects of Jet Airways purchased at Rs 1,020. Can I purchase additional units at these current prices? Mrs Kavita Narayan

Jet Airways (Rs 538.2): The stock is currently ruling near its all-time low. Due to paucity of adequate historical data, it is not easy to determine the place where the price can halt. So buying additional shares is not recommended. Price can rally to

Rs 700 over the next few months when you can exit this stock. Till then, hold with a stop-loss at Rs 450.

What is the short-term and medium-term outlook for MSK projects (India) Ltd bought at Rs 128 and Advani (Ramada) Hotel bought at 102? Saibaba

MSK Projects (Rs 70): The price has had a very steep 63 per cent fall from its peak of Rs 138 recorded in May 2006. Since several investors have entered this stock at higher levels, profit booking will be seen at every rally. Price will face stiff resistance between Rs 85 and Rs 90 over the next few months. Exit at these levels and switch to another stock. Till then hold with a stop-loss at Rs 48.

Advani Hotels (Rs 95.6): The price has turned up from its long-term support at Rs 56 and has since gained 68 per cent. There is short-term resistance at Rs 100 from which the price is currently reacting. Exit here is if you are a short-term investor. If your perspective is long-term, then hold the stock with a stop-loss at Rs 70.

Kindly let me know the prospects of Bata India purchased at Rs 247. T.S. Prasad

Bata India (Rs 207.2): Price of this stock has had a sharp 57 per cent fall since its peak of Rs 329 in May 2006. Price is turning down from the near term resistance at Rs 220. The resistance beyond Rs 220 falls at Rs 257. Exit at current levels if you are a short-term investor. If you are a long-term investor, then hold with a stop-loss at Rs 180.

I have purchased 1257 shares of Sterlite Industries at the rate of Rs 405. What is the prospect of this stock? Can I get rebate of STT (Securities Transaction Tax) in income-tax? I am an individual. Kalpesh G. Dasani

Sterlite Industries (Rs 424.5): The price has seen a strong rebound since hitting a low of Rs 255 on June 16. The price has already retraced 50 per cent of the fall from its May 2006 highs. The next target for the scrip is at Rs 475. This level needs to be crossed convincingly if the bear grip has to end on this counter. If you are a short-term investor, book profit and exit at these levels. Long-term investors can accumulate this scrip in the band between Rs 300 and Rs 350.

You can get rebate in respect of securities transaction tax (STT) paid under section 88E introduced by the Finance Act (No 2) of 2004. As per this section, where the total income of an assessee includes any income under the head `Profits and Gains from Business or Profession’ arising from taxable securities transaction, he shall be entitled to a rebate from the income tax on such income. The amount of rebate shall be the lower of the amount of STT paid in respect of taxable securities transactions entered into in the course of business during the previous year or the income-tax on above income.

What is the outlook for Mid-day multimedia bought at Rs 90 three months back? Basavaraj

Mid-day Multimedia (Rs 46.4): This stock has wiped out almost the entire gains that were made from the low of Rs 26 in August 2005. Long-term support exists at Rs 25. Hold with a stop-loss at Rs 24. The price will however struggle to get past Rs 66 in the medium-term. Exit at these levels if you are a medium-term investor and switch to some other stock.

What are the short and medium term prospects of Tata Tele Maharashtra? P. Annadurai, Dilip, Subur Basha Sheikh

Tata Tele Maharashtra (Rs 18.9): The recovery in the price since the low of Rs 15.5 recorded on 9 June does not show any conviction. A long-term support exists at Rs 17. A sharp fall below Rs 17 will drag the prices to Rs 14 or Rs 11. Price will struggle to go past Rs 24 over the next few months. This level, if breached can take the price to Rs 29. The outlook is negative for this stock.

Please advise whether I should hold JP associates bought at Rs 577. N. Raghunathan

JP Associates (Rs 427.1): If you are a short-term investor, then exit at current levels as the price has already retraced 50 per cent of its fall since the May 2006 high. The next resistance for the stock is at Rs 490. This level needs to be crossed strongly if the price has to proceed towards your cost price. If you are a long-term investor, then hold with a stop-loss at Rs 340.

What are the prospects of Hind Motors Shares bought at Rs 44.38 per share one year back? Sunil Dasgupta

Hindustan Motors (Rs 39.4): The price has clawed back to Rs 40 levels after being hammered to the lows of Rs 25 in July 2006. The medium-term outlook will stay positive as long as the price stays above Rs 32. You can hold the stock with a stop-loss at that level if you are a long-term investor. Short-term investors can exit at current levels. The price will face considerable resistance from Rs 47 levels over the next few months.

Check Your Chart…Positive Breakouts! August 19, 2006

Guj NRE Coke 65.80
Astra Microwave 185.70
Indraprastha 34.20
Guj NRE Coke 65.80
Pearl Polymers 16.65
IndusInd Bank 47.95
Hind Motors 38.75
Merck 549.75

Nicholas Piramal August 18, 2006

Nicholas Piramal look a safe buy with S.L. at Rs.205/= for target Rs.240/= and close above Rs.245/= will take it to Rs.280/=.