I have shares of Sasken Technologies bought at ₹1,660. Can I hold it or exit?

Venkatesh D

Sasken Technologies (₹2,218): The stock is in a strong uptrend. But a crucial resistance is coming up at in the ₹2,350-₹2,400 region which can halt the rally. If the stock manages to breach ₹2,400 decisively, the upside can extend up to ₹2,700. But a reversal from this resistance zone can drag the stock price down to ₹2,050 in the next few months.

Keep a stop-loss at ₹2,040 and protect your profit. This is very important as you have made a good entry. Exit 50 per cent of the holding at ₹2,330 and move the stop-loss to ₹2,280 for the rest. If a reversal happens, then exit at ₹2,280. Else hold the balance for the target of ₹2,700. Move your stop-loss higher by ₹20 for every fifty rupees move.

I am holding RBL Bank shares. My average purchase price is ₹245. What is the long-term outlook for the stock?

Mahendhiran Viswanathan

RBL Bank (₹174.45): The stock has been in a strong downtrend since the beginning of this year. There is no sign of a reversal. The price action on the chart leaves the outlook bearish. Moving average cross overs on the chart also strengthens the bearish case. Resistance is ₹187 and then in the ₹200-₹220 region.

A fall to ₹120-₹100 looks likely. If the stock declines below ₹100, then there a danger of the price tumbling towards ₹50 over the long-term. The stock has to rise above ₹315 to become bullish. That looks unlikely. So, you have to accept the loss and exit the stock now. It is not worth the time to wait just with a hope for the price to go up.

I am holding stocks of K&R Rail Engineering at an average price of ₹384. What is the outlook?

Vyshak, Thrissur

K&R Rail Engineering (₹423.45): The stock has been in a strong down trend since February this year. The 61.8 per cen Fibonacci retracement support level of ₹341 has been holding well for now. If a strong rise above ₹460 happens, then there are good chances to see a rise to ₹530-₹550. If it manages to rise past ₹550, then a further rise to ₹700 is also possible. Keep a stop-loss at ₹310 and hold the stock.

Move the stop-loss upto ₹485 as soon as the stock goes upto ₹520. Move the stop-loss further up to ₹610 when the price touches ₹660. Exit the stock at ₹680. If you have a high risk-appetite, then you can consider accumulating more at ₹380. But you will have to exit the stock with a loss in case the stop-loss level is reached.

What is the outlook for Mazagon Dock Shipbuilders? Can it be bought at current levels?

John

Mazagon Dock Shipbuilders (₹4,878.80): The breakout and close above ₹4,780 last week is a positive. It indicates that corrective fall has ended and the overall uptrend has resumed. From a long-term perspective, there is potential for the stock to target ₹7,300 over the next one-two years. Long-term investors can buy Mazagon Dock Shipbuilders now.

Accumulate on dips at ₹4,480. Keep a stop-loss at ₹4,060. Trail the stop-loss up to ₹5,120 when the price goes up to ₹5,480. Move the stop-loss further up to ₹6,120 when the price touches ₹6,650. Exit the stock at ₹7,100. This bullish view will go wrong only if the share price declines below ₹4,100. If that happens, a fall to ₹3,600 and lower levels can be seen. But such a fall looks less likely.

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