I have Reliance Industries Limited (RIL) shares purchased at ₹1,570. What is the outlook? Should I hold or exit?
Akshay Pavan
RIL (₹1,414.55): The stock is consolidating within its long-term uptrend. Strong supports are at ₹1,280, ₹1,100 and ₹1,000. Resistance is around ₹1,600. A strong break above it can take RIL share price higher to ₹2,500 in a year or so. From a multi-year perspective, RIL has potential to target ₹6,000. Hold the stock for long term.
Buy more at ₹1,340 and ₹1,180, if a dip happens. Keep the stop-loss at ₹920. Move the stop-loss up to ₹1,540 as soon as the stock goes up to ₹1,880. Revise the stop-loss higher to ₹2,200 and ₹4,400 when the price touches ₹3,800 and ₹5,300 respectively. Exit the stock at ₹6,000. As mentioned above, this is a multi-year outlook. So, you need to have patience in holding the stock.
Is it a good time to buy Indian Energy Exchange (IEX)? I intend to invest in it for long term.
M Sivakumar
IEX (₹120.50): On the charts, the picture is weak. Strong resistances are at ₹126 and ₹132. The stock has to rise and sustain above ₹132 to get some relief. As long as the stock stays below ₹132, the bias will remain negative. There is danger of the price falling to ₹110-108 from here. From a long-term perspective the stock has to first rise above ₹155 and then cross ₹210.
Only then the long-term outlook will turn bullish. Even if that happens, it may take a very long time. So, it is better to stay out of this stock now. You may consider investing in RIL which looks good for the long term. Follow the strategy mentioned in the above query.
I have purchased Tata Consultancy Services (TCS) at ₹3,075. Can I accumulate now?
P V Ramana, Guntur
TCS (₹2,390.60): The stock is in a strong downtrend since September 2024. Immediate support is around ₹2,345. A bounce from there can trigger a corrective rise to ₹2,900. Failure to rise past ₹2,900 and a fall thereafter will drag it back to ₹2,345 again. A break below ₹2,345 will then increase the danger of the price tumbling to ₹2,000 or even ₹1,800.
This will be the worst-case scenario. You have two options. One is to exit now and accept the loss. Second is to keep a stop-loss at ₹2,310 and hold the stock. Exit the stock on a rise at ₹2,850. Always have a stop-loss when you enter any position. That will help in minimizing the loss and get out of wrong trades quickly.
I have bought Tarsons Products. My average purchase price is ₹400. What is the long-term outlook?
Nooveeksha Reddy
Tarsons Products (₹184.15): The stock is in a strong downtrend since September 2022. There is no sign of a trend reversal. Strong resistance is in the ₹220-₹240 region. The stock has to rise above ₹240 to get a rise towards ₹330-₹350. But even then, that will just be a corrective rally. To become bullish the share price has to go above ₹350.
But that looks unlikely at the moment. There is no major support visible on the chart. So, the extent of the downside is unknown. Exit the stock and accept the loss. Do not enter any trade without a stop-loss. That will help you minimising the loss and also avoid getting stuck in a wrong trade.
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