I had bought Tanla Platforms at ₹930. Should I add at current levels? What is the outlook?
Mayur Aggarwal
Tanla Platforms (₹493.85): The stock has been in a strong downtrend. The consistent fall since August has dragged the share price below a key support level of ₹700. Immediate support is at ₹450 which can hold on its first test. A bounce from there can take Tanla Platform share price up to ₹700. But ideally the stock has to rise above ₹800 to become bullish again.
Two options you can consider. One, keep a stop-loss at ₹420. Exit the stock with a loss on a rise at ₹700. Second option is if you have the risk appetite, buy more at ₹460. Keep the stop-loss at ₹420. Exit on a rise at ₹700. In both cases you may have to exit at ₹700.
I bought Cyient at ₹1,430. What is the outlook? Can I accumulate the stock now?
Sateesh
Cyient (₹1,365): The stock has tumbled about 26 per cent since the beginning of this year. However, a long-term support is coming up at ₹1,250 which can halt the fall. A fresh rise from around ₹1,250 can take Cyient share price up to ₹1,750 initially. A break above ₹1,750 can see an extended rise to ₹1,900.
A sustained rise above ₹2,000 is needed to turn the long-term outlook bullish. Only then, the doors will open for a rally to ₹2,500 and higher levels. You can accumulate at ₹1,280. Keep a stop-loss at ₹1,060. Revise the stop-loss higher to ₹1,250 as soon as the stock goes up to ₹1,420. Move the stop-loss further up to ₹1,550 when the price touches ₹1,700. Exit the stock at ₹1,900.
What is the outlook for Vindhya Telelinks? Can I buy the stock now for long term?
M. Vijay Kumar, Hyderabad
Vindhya Telelinks (₹1,482.35): The stock has been in a strong downtrend since August last year. However, a strong trendline support is coming around ₹1,350. A low of ₹1,380 has already been last week and stock seems to be attempting to rise. A strong rise above ₹1,600 from here will be very bullish from a long-term perspective.
Vindhya Telelinks share price can rise to ₹3,500 over the next couple of years. You can buy now and accumulate at ₹1,390. Keep the stop-loss at ₹1,160. Trail the stop-loss up to ₹1,820 as soon as the stock goes up to ₹2,100. Revise the stop-loss further up to ₹2,700 when the price touches ₹3,100. Move the stop-loss up to ₹3,100 when the price goes up to ₹3,300. Exit the stock at ₹3,400.
What is the outlook for Power Grid Corporation of India?
Sonia, Mumbai
Power Grid Corporation of India (₹261.75): The trend is down. There is room to fall more from current levels. Immediate support is at ₹240. A break below it can drag the share price down to ₹220 or even ₹200. A fall beyond ₹200 is less likely. A fresh rise from ₹240 or ₹220-200 can take the share price up to ₹320-360 again.
If you want to buy this stock, do it in three tranches. Buy 30 per cent at ₹245. Then buy another 40 per cent at ₹225 and the balance 30 per cent at ₹210. Keep a stop-loss at ₹185. Trail the stop-loss up to ₹270 as soon as the stock goes up to ₹295. Move the stop-loss further up to ₹310 when the price touches ₹325. Exit the stock at ₹360.
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