I have bought shares of Torrent Power at ₹547. Should I continue to hold the stock or book profits now? Please advise.

Sudhir Padhye, Dombivli

Torrent Power (₹1,510.85): This stock has made a stellar rally from February last year. This rally touched a high of ₹1,633 in April this year and then paused. The stock has been range bound between ₹1,265 and ₹1,635 since April this year. There is no threat for the broader uptrend at the moment. However, it is necessary to be cautious and protect your profit now. The region between ₹1,400 and ₹1,300 is a crucial support zone. The uptrend will come under threat if the stock makes a weekly close below ₹1,300. If that happens, then Torrent Power share price can fall to ₹1,000, going forward.

On the other hand, the stock has to breach ₹1,650 to resume the rally. Such a break can take Torrent Power share price up to ₹2,000. You can exit 30 per cent of your holdings at current levels. Keep a stop-loss at ₹1,280 for the rest of the holdings. Revise the stop-loss up to ₹1,580 when the price goes up to ₹1,780. Move the stop-loss further up to ₹1,850 when the price touches ₹1,920. Exit the stock at ₹2,000. If a fall to ₹1,280 happens first, then you should adhere to the stop-loss and exit.

I would like to know the technical outlook for PVR Inox.  Please advise the entry and exit levels for this stock.

R.T. Rajasekaran, Bengaluru

PVR Inox (₹1,437.55): The stock has been in a downtrend since August 2022. Although a bounce has happened from the low of ₹1,203.70 this month, the downtrend is still intact. Resistances are at ₹1,500 and then in the ₹1,650-1,700 region. As long as the stock trades below these supports, there are good chances for a fall to ₹1,050-1,000 in the coming months. The region around ₹1,000 is a strong long-term trend support.

A fresh rally from around ₹1,000 will be very bullish from a long-term perspective. That leg of up-move will have the potential to take PVR Inox share price up to ₹2,500 over the next three years. Long-term investors with a minimum time frame of three years can buy the stock at ₹1,080 and accumulate at ₹1,030. Keep a stop-loss at ₹820. Trail the stop-loss up to ₹1,520 when the price goes up to ₹1,780. Move the stop-loss further up to ₹1,920 when PVR Inox share price touches ₹2,150. Exit the stock at ₹2,400.

I have bought Larsen & Toubro (L&T) shares at ₹3,230. What is the outlook for this stock? Should I book profits or continue to hold?

Swaroop B U

Larsen & Toubro (L&T) (₹3,533.10): The stock has been in a strong uptrend since April 2020. The rally seems to have paused, as the stock has been oscillating in a wide range since December last year. Support is at ₹3,180. Resistance is around ₹4,000. The stock is now around the mid-point of this range. On the daily chart, the bias is negative. It indicates high chances for a fall to ₹3,350 and ₹3,200 in the short term.

So, you can consider exiting 50 per cent of your holding at current levels. Keep a stop-loss at ₹3,160 for the balance 50 per cent holding. If this level is reached, then exit the stock. On the other hand, if L&T bounces back from around ₹3,200 again, then move the stop-loss up to ₹3,740 when the price touches ₹3,920. The stock can rise to ₹4,350 if it breaks above ₹4,000. So, move the stop-loss further up to ₹3,980 when the price goes up to ₹4,100. Exit the stock at ₹4,300.

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