I had bought 26 shares of Bharti Airtel Ltd on 10 September at Rs842 with a short-term objective. Should I exit or wait?

- Rizwana Kapadia

Bharti Airtel Ltd is fundamentally a good stock, but it has been underperforming the aggregate market for the last two weeks. The stock touched a high of Rs860, but came off its high on profit selling. As an effective investment strategy for short-term investment/ trading, you should always apply a stop loss of profits to avoid losses and lock in some amount of profits if the market/ stock falls. This strategy gives you an opportunity to stay long and yet secure profits. At present, you may wait till stop loss of Rs811 or target of Rs864.

I have 210 shares of JB Chemicals & Pharmaceuticals Ltd bought at an average rate of Rs102 and 70 shares of Cipla Ltd purchased at an average rate of Rs250. I can hold these stock for a period of 9 -12 months. Should I hold or sell and book losses?

- Anil Bilawala

JB Chemicals is on an uptrend currently with resistance at Rs76 and Rs84, respectively. The stock is likely to move up to Rs84 in times to come and consolidate. I would advise you to take a fresh call on this stock once it reaches the Rs84 level. Only if it goes up beyond this level with significant volumes, can you expect it to touch Rs100 or so. The Cipla Ltd stock has its first resistance at Rs186 and then at Rs195 in the short term. If it closes above this level, then it could touch the level of Rs224. Hold on to Cipla.

I want to buy steel stocks for my portfolio. I already have textiles, technology, bank, pharma and auto stocks. Which steel stock I should buy with a time frame of two-three years?

- Kiran Kapoor

Almost all steel stocks are currently in a bullish phase; some of them like Tata Steel Ltd, Steel Authority of India Ltd and Bhushan Steel Ltd are quoting near their 12-month highs. I would suggest you wait for a correction to buy steel stocks. Following the correction, you can buy Tata Steel Ltd, Steel Authority of India Ltd and JSW Steel.

I have 110 shares of Infosys Ltd purchased at an average price of Rs1,950. At the current price of Rs1,841, I am making a loss of around Rs110. Should I exit the stock now and invest elsewhere?

- Ranvir Singh

Infosys Technologies Ltd is a blue-chip stock despite under-performing the markets for the past two quarters. Technically, it has limited downward potential at current levels. I would suggest you hold the stock till the company declares its second quarter results next month. If it delivers good results despite the US subprime crisis, I think it will attract fresh investment. So hold on to your investment.

The answers are based on a technical analysis of markets and individual stocks. The views expressed here 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.