What is the outlook for SAIL? Where is the stock headed from the current levels? I am holding this share at an average price of ₹136. I can hold till this year-end.

Nishant

SAIL (₹130): The stock has been in a downtrend since May this year. But this is just a corrective fall within the broad uptrend that had begun in April 2020. There is room for the share price to fall further from here. Strong support is around ₹118, which can be tested in a month or two. A strong bounce from around ₹118 will be bullish from a long-term perspective. That can take the SAIL share price up to ₹170 or ₹185 in the first quarter next year.

A decisive break above ₹185 can take the stock further up to ₹210. We suggest not to restrict your holding period to this year-end. Rather, consider a longer holding period of, say, a minimum of one year from now. Buy more on dips at ₹119. Keep a stop-loss at ₹101. Trail the stop-loss up to ₹140 as soon as the stock moves up to ₹170. Move the stop-loss further up to ₹185 when the price touches ₹195. Exit the stock at ₹210.

What is the long-term outlook for L&T Finance? I have bought this stock at ₹170. Can I accumulate at current levels?

Neha, Mumbai

L&T Finance (₹168): The stock has been in a strong uptrend since April 2020. The uptrend is intact. There is a cluster of supports in the broad ₹155-145 region. A dip to test this support zone in the short term cannot be ruled out. However, a fall below ₹145 looks less likely. We can expect the stock to reverse higher anywhere from the ₹155-145 support zone. That leg of rally will have the potential to take the L&T Finance share price up to ₹210-215 in the coming months.

You can consider accumulating the stock at ₹158. Keep a stop-loss at ₹138. Trail the stop-loss up to ₹175 as soon as the stock goes up to ₹190. Move the stop-loss further up to ₹195 when the price touches ₹205. Exit the stock at ₹210. The bullish view will go wrong if the L&T Finance share price declines below ₹145. If that happens, there will be a danger of the price tumbling towards ₹110.

What is the outlook for Allcargo Gati? What is a good level to enter this stock?

Amit Maity

Allcargo Gati (₹102): The stock is in a strong downtrend since February 2022. There is no sign of a reversal yet. Within the downtrend, the stock has been consolidating since April this year. The bearish moving average cross-over on the monthly chart indicates that the downtrend will continue to remain in place for some more time. A fall to ₹75 looks possible in the coming months. A break below ₹100 can trigger this fall. An eventual break below ₹75 will see the price tumbling towards ₹50-40 over the next three-four quarters.

The region between ₹50 and ₹40 is a strong long-term support, where the downtrend can end. A strong reversal from this support zone will have the potential to take the Allcargo Gati share price up to ₹200 again in the next two-three years. So, you may have to wait for the share price to fall and buy at ₹55 and ₹45. Keep a stop-loss at ₹30. Trail the stop-loss up to ₹75 when the price goes up to ₹120. Move the stop-loss further up to ₹150 when the price touches ₹170. Exit the stock at ₹200.

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