I have shares of Lemon Tree Hotels in my portfolio at an average price of ₹67. Can you please advise me at what price should I book profit in the stock?
Lemon Tree Hotels (₹83.25): The trend is still up for Lemon Tree Hotels stock. Although the resistance at ₹91 is holding well for now, there is no sign of a reversal. So you can continue to do your job. It is very important to protect your profits. So keep a stop-loss at ₹79 and exit if the stock falls to that level. However, the chances of this stop-loss hitting seem less likely due to strong support at ₹81.80. A break below is less likely.
As long as Lemon Tree Hotels holds above this support, there is no danger for the current uptrend. The rise from May 2020 is in the form of a bullish channel. The breakout of the channel pattern suggests that the stock has the potential to target ₹105 on the upside. Chances of seeing a sideways consolidation between ₹82 and ₹94 cannot be ruled out. A decisive break above ₹94 will pave the way for a new rally to ₹105. Revise the stop-loss to ₹91 as soon as the stock rises to ₹96. Move the stop-loss to ₹97 when the stock touches ₹101 on the upside. Book profits on your positions at ₹103.
I have shares of Bharat Forge. My average purchase price is ₹800. What are the prospects for this title? Should I keep it or walk out with a loss?
Bharat Forge (₹747.60): The general outlook for this stock is positive and the general trend is up. So you can hold this stock. The drop from August of last year is just a correction in the overall uptrend. Immediate support is at ₹675. Then strong support lies in the broad region of ₹650-600. Resistance is at ₹865. Chances are high for the Bharat Forge stock to break above ₹865 by the end of the year.
Such a break will pave the way for a further rally to ₹1,000 and ₹1,050 by the first half of 2023. Assuming you can hold this stock for this period, hold a stop-loss at ₹635. Follow the stop-loss to ₹820 when the stock rises to ₹880. Move the stop-loss up to ₹940 when the stock touches ₹985. Pull out of stock at ₹1,035.
I bought Sundaram Finance at ₹2,300. What are the medium and long term prospects? Can I continue to hold this stock?
MS of Ganesh
Sundaram Finance (₹2,240.70): The long-term outlook is optimistic for Sundaram Finance. There is immediate resistance at ₹2,350. A decisive weekly close above this resistance can reinforce the bullish momentum. It can carry the stock up to ₹2,700 initially. Strong supports are at ₹2,120 and ₹2,010. The outlook will only turn bearish if the stock drops below ₹2,000. But the chances for that are very less. The price action on the charts indicates that the stock has been bought over the past few weeks on lows to ₹2,100 itself.
From a long-term perspective, Sundaram Finance has the potential to reach ₹3,300 in the next year. A break above ₹2,700 will pave the way for the rally to ₹3,300. Keep a stop-loss at ₹1,920 and hold the stock. Move the stop-loss up to ₹2,400 as soon as the stock rises to ₹2,680. Move the stop-loss up to ₹2,850 when the stock touches ₹3,050 on the upside. You can get out of stock at ₹3,280.