I have shares of Ahluwalia Contracts (India) Ltd. My purchase price is ₹815.  Should I continue to hold the stock or book profit?

Chandrasekaran M 

Ahluwalia Contracts (India) (₹1,213.70): The broader trend is up and intact. There is no sign of a reversal yet. Strong support is there in the ₹1,080-1,050 region. As long as the stock trades above this support zone, the uptrend will continue to remain intact. Ahluwalia Contacts (India) share price has potential to target ₹1,500 in the next few months. So, you can continue to hold the stock. But what is important is that you have to protect your profits. So, keep a stop-loss at ₹1,030 for now. Move the stop-loss up to ₹1,140 when the stock moves up to ₹1,330. Revise the stop-loss further up to ₹1,380 when the price goes up to ₹1,440. Exit the stock at ₹1,480. Please note that the outlook will turn bearish if the stock declines below ₹1,050. If that happens, there is a danger of the price falling to ₹850. So, you will have to adhere to the stop-loss mentioned above and exit the stock accordingly.

I have bought KRBL shares at an average price of ₹374. I am a long-term investor. Can I accumulate at current levels?

Malarvasagan, Hosur

KRBL (₹310.05): The stock has been in a downtrend since October last year. The share price has risen back well over the last couple of weeks from the low of ₹258. But that has not changed the structure on the chart. Resistances are at ₹320 and ₹350-360. So, a decisive break above ₹360 is needed to turn the sentiment positive. Only then the outlook will turn bullish and a rally to ₹480 is possible. As long as the stock trades below ₹360, the chances of the broader downtrend resuming cannot be ruled out. A fall below ₹260 can increase the danger of the share price tumbling towards ₹200-190 in the coming months. The indicators on the charts are also giving negative signals. As such, we place high probability for the share price to fall further in the coming weeks. So, it is better you exit the stock at current levels and accept the loss. Reinvest the sale proceeds in some other stock that looks strong on the charts.

I have Relaxo Footwears stock bought at ₹1,100.  What is the outlook for this stock. Can I continue to hold or exit. Please advise.

A Valliappan, Chennai

Relaxo Footwears (₹834): The stock has been in a downtrend since November 2011. However, this downtrend could be nearing a bottom. Immediate support is at ₹760. Below that ₹720-700 is the next strong support zone. A fall beyond ₹700 might be difficult as seen from the charts. Cluster of resistance is in the ₹900-1,000 region. A strong rise either from here itself or after one more dip to ₹720-700 can have the potential to breach ₹1,000 in the coming months. Such a rise above ₹1,000 will confirm the trend reversal. That new uptrend can take Relaxo Footwears share price up to ₹1,500. But this rally will take a minimum of two years. So, if you can hold the stock for another two years, then buy more at current levels and also at ₹760. Keep a stop-loss at ₹680. Move the stop-loss up to ₹920 when the price goes up to ₹1,100. Move the stop-loss further up to ₹1,280 when the price touches ₹1,380. Exit the stock at ₹1,470.

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