I hold 500 shares of ITC Ltd purchased at Rs198. Despite the Sensex moving up, ITC is still far below my purchase price. Should I hold, buy more or sell this stock?
ITC is a blue chip stock, which is considered a safe investment. But the return on this stock is below average. In my opinion, the stock is in buy mode now and has a potential to touch Rs193 in a time frame of 0-2 months. You may hold this stock till this level and then take a fresh call.
I am short two lots of State Bank of India (SBI) futures at Rs1,492 and have recently rolled over my positions to the September derivative cycle. Since SBI has moved up substantially, what should I do now?
Banking stocks are in an upswing and you may see further gains in SBI in coming days. Since there is a change in sentiment in the markets, it is not advisable to hold your short positions indefinitely. It would be better to stop-loss your short position in SBI.
I have purchased 200 shares of ABB Ltd at Rs1,080. Currently, I am making a profit on my investment. Should I exit the stock?
ABB is technically strong even at current levels and may witness sharp gains in coming months. If you have a very short-term perspective of your investments, you may book profits around Rs1,085. However, if you can wait, you may get a chance to sell around Rs1,240. But, as an investment strategy, you should put stop-loss at your purchase price, so that you don’t incur losses. You may advance your stop-loss as the stock moves up, as this way you would be able to lock some of the profits even if the stock falls.
What are the future prospects of Bajaj Auto Ltd? The stock has given excellent returns in the past. I have 1,200 shares of Bajaj Auto and I have been holding them for long. Should I convert them in to some other stocks?
Bajaj Auto has been a very investor-friendly stock. However, at current levels, you cannot expect a repetition of its past performance. The stock, though, has upward potential even at current levels, but I would suggest you diversify your portfolio and book profits in part of your holdings and utilize the proceeds to buy good stocks of other industries.
I hold 1,100 shares of Tata Steel Ltd. Should I book profits in the current rally in the stock?
Tata Steel is an excellent portfolio pick with a long-term perspective. The stock has gained 18% during the last few trading sessions and still has steam left in it. If you are a long-term investor, you should hold this stock.
The answers are based on a technical analysis of markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and provided for information purposes only by Vipul Verma. Readers are requested to do their own research before participating in stock markets, and neither the paper nor the information provider will be responsible for any actions and outcomes based on information provided here.