Ask Mint | On Investments

Ask Mint | On Investments

I had bought 400 shares of DCW at Rs22. What is the right time to sell it? Or should I hold it?

- Kunal

 DCW Ltd is currently in a bullish phase and has witnessed a sharp rally since the middle of November. However, technically, the rally is showing some signs of weakening in the short term, though the trend may continue in the long term. If you have a short-term perspective of your portfolio, then you may partly book profits. However, If you are a long-term investor, then hold it. But the best strategy would be to book profits partially and continue with the rest of your holding.

I have exposure in two lots in GMR Infrastructure at Rs200, one lot each in Reliance Petroleum at Rs220, Ispat Industries at Rs66 and Tata Teleservices Maharashtra at Rs58. Please advise.

- Dayanand

GMR Infrastructure Ltd is currently in consolidation phase. The stock has a strong resistance in the band of Rs250-254 and a strong support in the band of Rs218-222. A break-out on either side may lead to sharp movements. However, as of now, it is showing signs of improvement. You should plan your investment strategy in it keeping in mind the above-mentioned levels. Reliance Petroleum Ltd is also in consolidation phase, and is showing a divergent trend currently. The stock has strong resistance at Rs231 and support at Rs202. Ispat Industries Ltd had a dream run recently and is currently poised for some halt. The stock has strong resistance at Rs89, a close above which with good volumes might be considered bullish. The stock may ease a bit in the short run and may find some support in the region of Rs78-80. However, you may continue to hold your position in the stock with a stop-loss of Rs72. Tata Teleservices Maharashtra Ltd has a strong support at Rs54 and resistance at Rs62. If this stock closes above Rs61 with god volumes, then you may expect more gains. But a close below Rs55 could be a weak sign in the short term. The long-term outlook of this stock continues to remain very bright. Please note all the rates(prices) mentioned above are for cash market and not the futures rate. Please adjust discount or premium in these rates to work out reference futures rates.

I had bought shares of Insilco at Rs60. I have been holding it for the past five years. When is the right time to sell it?

- Geeta

Insilco Ltd has witnessed strong gains of late and touched its 52-week high recently. There is nothing exciting about this company, either fundamentally or technically, at this point of time, and it would be better to cut your loss and invest in other stocks. Take a call somewhere in the middle of January as markets might witness renewed activity from second week of January.

Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on the information provided here