I have 500 shares of Cipla Ltd purchased at Rs190. The stock price has gone down sharply. Analysts quote Cipla Ltd as an underperformer. Should I hold or exit this stock?
Despite being a leading pharma company, Cipla has not done well on the bourses. However, after falling to Rs165 levels, the stock has shown some strength. But the stock is headed south once again in the short term, though the medium- (around six months) to long-term (more than one year) outlook remains buoyant for the company. Recently, a US court upheld the validity of a key patent on Forest Laboratories’ blockbuster depression drug Lexapro and affirmed a lower court’s decision to block sales of generic forms of the drug made by Teva Pharmaceutical Industries Ltd and Cipla. This, too, has added to negative sentiments in the stock.
As for your investment decision, I think it would be better to reduce your exposure in the stock once it reaches your buy price and diversify in other fast-moving stocks.
I bought 200 shares of Bharti Airtel Ltd at Rs792, when the market fell last month. Though markets have gone up substantially, Bharti Airtel has not moved much and, in fact, it has given a negative return during the last week. Should I exit the stock as I am still making some profits?
Though Bharti Airtel has not performed well during the last week, it has been a constant performer otherwise. The decision of holding or selling the stock depends on time period also. If you are a long-term investor, then you should remain invested in the stock for one year or so as the stock is likely to give you good returns. In the short term, this stock may get affected by market volatility, but it should now outperform the market in general in the time frame of zero-two months. If you do not have a better investment proposition, then you should hold this stock.
What are the long-term targets of Housing Development Finance Corp. (HDFC)? I am holding 350 shares at an average price of 1,850. I am a long-term investor and invest in blue chip stocks.
HDFC is an excellent long-term bet. From the long- term perspective, you can have a comfortable target of Rs2,450.
I am short 20 lots of Nifty September futures at 4,463 points since last week. What are the prospects? When should I cover my position or put a stop-loss?
You are likely to make good profits on your call this week as the market is expected to go down in the initial part of the week. The Nifty Futures September has the following resistance and support levels. Resistance: 4,522 points, 4,582 points. Support: 4,422 points, 4,348 points and 4,244 points.
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 are provided for information purposes only by Vipul Verma. Readers are requested to do their own research before participating in stock markets. Neither the paper nor the information provider will be responsible for any actions and outcomes based on the information provided here.