I have shares of SBI Cards and Payment Services, bought at ₹868 last August. I am a long-term investor. What is the outlook for this stock? Should I exit or hold it for another two years?

Kiruthika S

SBI Cards and Payment Services (₹692): The trend is down. However, there is a crucial support in the ₹680-670 zone. The stock has been consolidating above this support zone over the last three months. A strong rise from here breaking above ₹735 can take the share price up to ₹800-815 over the next one or two quarters. However, the stock has to make a decisive break above ₹815 to become convincingly bullish again. Only in that case, SBI Cards and Payment Services share price can rise to ₹900 and ₹1,000-levels again. But a break and rise above ₹815 would need some strong positive trigger.

In case the stock declines below ₹670, it can decline further towards ₹600 and even lower. It is better to exit the stock and accept the loss. Considering the lack of strength on the charts and the time that would be required to go back to your actual purchase price, it may not be worth the wait. You may consider reinvesting the sale proceeds in some other stock that looks strong on the charts. Maybe you can consider Repco Home Finance explained in the next query.

Is it a good time to enter Repco Home Finance?

Pradeep Kabra

Repco Home Finance (₹468.35): The broader trend is up. But the stock is now witnessing a corrective fall within the uptrend. There is room on the downside for a fall to ₹420 or even ₹400 in the coming weeks. This fall may happen over the next two-three months. We can expect the uptrend to resume after this fall. So, a fresh rally from the ₹420-400 support zone can take Repco Home Finance share price up to ₹600 and even higher over the medium term.

From a long-term perspective, looking at the pattern on the chart, Repco Home Finance share price has the potential to target ₹750 over the next couple of years. You can wait for dips and buy the stock at ₹430 and then at ₹410. Keep a stop-loss at ₹330. Trail the stop-loss up to ₹520 when the price goes up to ₹620. Move the stop-loss further up to ₹610 when the price touches ₹700. Exit the stock at ₹730. If you don’t want to hold the stock for a long term, then you can consider exiting the stock at ₹595 itself.

I have North Eastern Carrying Corporation Ltd  shares at an average price of ₹45. Can I hold it for some more time or exit and book loss? Kindly advise 

Smitha, Delhi

North Eastern Carrying Corporation (NECC) (₹24.82): The short-term trend is down. Immediate support is at ₹23.50. A break below it can drag NECC share price down to ₹19.50 or ₹18.50. But thereafter, we can expect the stock to see a fresh rise. That leg of rally may have the potential to target ₹45 over the next one year or so.

If you can hold this stock for another year, then buy more at ₹20. Keep a stop-loss at ₹17.50. Move the stop-loss up to ₹23 when the price goes up to ₹28. Revise the stop-loss further up to ₹33 when the price touches ₹39. Exit the stock at ₹43. You should have a lot of patience as the rise to ₹45 might happen very slowly. In case you feel that it is not worth the wait to get this rise, then you can exit the stock and reinvest the sale proceeds in some other stock. In that case, you can consider Repco Home Finance and follow the strategy mentioned in the previous query.

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