I have bought TVS Holdings Ltd at ₹11,850. Can I hold the shares?

Rajagopalan

TVS Holdings (₹11,970): The stock is now in a corrective fall. Immediate resistance is around ₹13,000. As long as the stock trades below this resistance, the bias will remain negative. As such the stock can break the support around ₹11,700. Such a break can drag TVS Holdings share price down to ₹10,200. If the sell-off worsens, then a break below ₹10,200 will increase the danger of the stock tumbling towards ₹9,700-₹9,600. The stock has to rise above ₹15,000 to gain fresh momentum.

Only then it can rise to ₹18,000 and higher. You can consider two options. One is to exit the stock with a small profit. The second option is to keep a stop-loss at ₹11,620 and hold the stock. Exit at ₹14,500. We prefer to go with the first option.

I have shares of Gujarat State Fertilizers & Chemicals (GSFC). My purchase price is ₹237. What is the outlook for the stock? Should I continue to hold or exit?

Nicky, Mumbai

GSFC (₹205): The overall trend is up. Currently the stock is in a correction phase. Strong support is in the ₹190-₹170 region which can limit the downside. Resistance is around ₹250. A fresh rise either from here itself or after a fall to ₹190-₹180 can take the stock above ₹250.

That leg of rally will have the potential to take Gujarat State Fertilizers & Chemicals share price up towards ₹350 over the next one year or two. You can consider accumulating the stock at ₹195 and ₹180. Keep the stop-loss at ₹155. Move the stop-loss up to ₹230 as soon as the stock goes up to ₹280. Move the stop-loss further up to ₹310 when the price touches ₹330. Exit the stock at ₹350.

I have bought the shares of Ideaforge Technology at ₹738. Should I exit the stock now with a loss?

Kishore Kumar, Patna

Ideaforge Technology (₹622): The stock is in a downtrend. There is no sign of a reversal. Strong resistances are at ₹645, ₹680 and ₹730. The stock can stay below ₹680 itself. On the downside, there is room for a fall to ₹515 or even ₹470. The stock has to go above ₹730 to give an early sign of a reversal. Ideally, the share price has to rise past ₹850 in order to turn the outlook bullish.

Such a strong upmove looks unlikely at the moment. It will need some strong trigger. So, exit the stock at current levels and accept the loss. You can consider reinvesting the sale proceeds in some other stock that looks good on the charts. You can even consider, GSFC explained in the previous query and follow the same strategy.

I have shares of Niyogin Fintech bought at ₹77. What is the outlook for the stock?

Narendra

Niyogin Fintech (₹50): The stock is in a downtrend since the beginning of this year. Strong resistance is in the ₹55-₹65 region. A strong rise above ₹65 is needed to turn the outlook bullish. Only then the doors will open for a rise to ₹90. As long as the stock stays below ₹65, the downtrend will remain intact.

As such there is a danger of Niyogin Fintech share price tumbling towards ₹35-₹30 from here. Considering the long-term picture, there are good chances for the stock to reverse higher from the ₹35-₹30 support zone and go higher towards ₹80 and ₹100 again. It is better to exit the stock now and accept the loss. You can consider buying this stock again at ₹35 for the above-mentioned rise to ₹80-₹100. Keep the stop-loss at ₹22.

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