I have shares of Zee Entertainment Enterprises. My purchase price is ₹230. What is the outlook for the stock? Should I continue to hold or exit?
Vikas Sharma
Zee Entertainment Enterprises (₹156.55): The stock has been in a downtrend since 2018. The share price had tumbled from a high around ₹619 in January 2018. But from a very long-term picture, there is a strong support around ₹115. The price action over the last couple of months also indicates that the stock has been getting buyers below ₹120. So, there are good chances that a bottom is getting formed in Zee Entertainment Enterprises. From a multi-year perspective, a strong rise from around ₹115 can take the share price up to ₹300-350.
This might happen by early next year. A strong break above ₹350 will have the potential to target ₹650-700 over the next three years or so. If you can hold the stock for another three years, then this is a good time to accumulate at current levels. Keep a stop-loss at ₹85. Move the stop-loss up to ₹280 as soon as the stock goes up to ₹360. Move the stop-loss further up to ₹480 when the price touches ₹570. Exit the stock at ₹650.
I have bought shares of Castrol India at ₹168. Should I hold this stock or sell at current levels?
Biju Joy, Kottayam
Castrol India (₹194.95): The short-term outlook is slightly unclear. The stock has been struggling to get a strong follow-through rise above ₹200 since February this year. However, strong support is in the ₹160-150 region. As long as the stock stays above ₹150, the broader uptrend will remain intact. Castrol India share price has potential to target ₹250 in the coming months. From a long-term perspective, a decisive break above ₹250 can take the stock up to ₹380 over the next three years or so.
If you are a long-term investor, keep a stop-loss at ₹140 and continue to hold the stock. Move the stop-loss up to ₹230 when the price goes up to ₹280. Move the stop-loss further up to ₹310 when the price goes up to ₹340. Exit the stock at ₹380. If you do not intend to hold the stock for three years, then you can exit at ₹250. In that case, you can consider reinvesting the sale proceeds in some other stock. Maybe you can consider Zee Entertainment Enterprises explained in the previous query. You can enter this stock at the prevailing price at that time.
Can I invest in TCI Express at current levels? What is the long-term outlook for this stock?
Raghul Nigotiya
TCI Express (₹1,078.70): The stock has been in a strong downtrend since December 2021. This downtrend is still intact. Within this, the stock has been consolidating above ₹1,000 since mid-March this year. Strong resistance is in the broad ₹1,200-1,300 region. TCI Express share price has to breach ₹1,300 and then should rise past ₹1,400 subsequently to indicate a trend reversal and become bullish. That looks less likely now. On the charts, there is room for one more leg of fall.
A decisive break below ₹1,000 can drag TCI Express share price down to ₹800-790 over the next couple of quarters or earlier than that. From a long-term perspective, the stock can find a bottom around ₹800. A fresh leg of rise from around ₹800 will have the potential to take TCI Express share price to ₹1,500 over the next two-three years. If you want to invest in this stock, you may have to wait for further fall and invest at around ₹810. Keep a stop-loss at ₹680 for a target of ₹1,500. Trail the stop-loss up to ₹1,130 as soon as the stock goes up to ₹1,250. Move the stop-loss further up to ₹1,320 when the price touches ₹1,430.
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