I have shares of Indian Oil Corporation (IOC). My average purchase price is ₹125. Should I continue to hold the stock or book profits?
Akshay Pavan
IOC (₹169.10): The long-term trend is up. The stock touched a high of ₹192.80 in February this year and has come down from there. Since March, it has been broadly oscillating in a sideways range. This is just a consolidation within the overall uptrend. Strong supports are at ₹165 and ₹150. As long as the stock stays above ₹150, there is no threat for the uptrend. IOC share price has potential to target ₹220 by this year-end.
So, you can continue to hold the stock. Keep a stop-loss at ₹145 and protect some profits. Revise the stop-loss up to ₹185 as soon the stock goes up to ₹205. Move the stop-loss further up to ₹200 when the price reaches ₹210. Exit the stock at ₹220. The bullish outlook will get negated only if the stock breaks below ₹150. If that happens, then IOC share price can fall to ₹120 and lower. But as seen from the charts, such a fall looks less likely.
What is the technical outlook for Bajaj Hindusthan Sugar?
CA Pavitra Puglia
Bajaj Hindusthan Sugar (₹39.60): The stock has been in an uptrend since August 2022. However, there have been instances of corrections, followed by a strong rebound. The recent price action indicates that the stock has been struggling to breach ₹44 decisively. That leaves the chances high for a short-term corrective fall, going forward. Such a fall can take the stock down to ₹36 or even ₹31 in the next two months or so. But thereafter, we can get a fresh leg of rally.
That will have the potential to take Bajaj Hindusthan Sugar share price up to ₹55-57 by this year-end or early next year. So, if you want to buy this stock, you may have to wait. Buy on dips at ₹32. Keep the stop-loss at ₹24. Trail the stop-loss up to ₹35 as soon as the stock moves up to ₹42. Revise the stop-loss higher to ₹46 when the price touches ₹50. Exit the stock at ₹54.
I would like to buy and hold Ganesh Housing Corporation shares for a period of four-five years. What is the technical outlook? Suggest a good entry level for this stock.
Ashish
Ganesh Housing Corporation (₹873.10): The stock has been in a long-term uptrend since February 2021. This uptrend had gained momentum in January this year and there have been some volatile swings since February. The share price touched a high of ₹1,110 last month and has been coming down from there. There is room for more fall from here. Support is around ₹770, which can be tested in a month or two. Thereafter, we can expect the share price to reverse higher and resume the uptrend. That leg of rally can take Ganesh Housing Corporation share price up to ₹1,300-1,350 over the next couple of years.
If the momentum is strong, this rise can happen in a year. On the chart, in this case, a five-year forecast is slightly difficult. But if the stock breaks below ₹770, there is a danger of the price tumbling towards ₹630. So, you may have to be very careful once you enter your positions. Wait for a fall and buy at ₹810 and ₹780. Keep the stop-loss at ₹730. Trail the stop-loss up to ₹880 when the price goes up to ₹950. Move the stop-loss further up to ₹1,100 when the price touches ₹1,210. Exit the stock at ₹1,300.
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