I have shares of Hindustan Aeronautics bought last year at ₹5,476. Should I hold the shares or sell them?

Ravi Kant K

Hindustan Aeronautics (₹4,494): The downtrend that was in place since July last year seems to have ended. The recent price action indicates an early sign of a trend reversal. Intermediate resistance is in the ₹4,700-4,800 region. A strong rise above ₹4,800 will confirm the trend reversal.

It will also clear the way for a rally to ₹6,900-7,000 in a year or two. Support is at ₹4,000-3,800 which can limit the downside. Fresh buyers are likely to come into the market near this support zone. You can accumulate at current levels. Keep a stop-loss at ₹3,640. Revise the stop-loss up to ₹4,600 when the price goes up to ₹5,200. Move the stop-loss further up to ₹5,400 when the share price touches ₹6,100. Exit the stock at ₹6,800.

What is the long-term outlook for Asian Paints. I bought this stock at ₹3,100.

Govindraj

Asian Paints (₹2,409): The prolonged multi-year sideways consolidation came to an end in November last year when the price fell below ₹2,700. The stock fell to a low of ₹2,125 and is attempting to bounce from there. A strong long-term support is around ₹2,000 which is holding for now. A break below this support can drag the price down to ₹1,600-1,500.

The stock has to hold above ₹2,000 and then rise above ₹2,800 to get a breather. Ideally, the share price has to surpass ₹3,600 to confirm a fresh bullishness. There are good chances to see a sideways consolidation between ₹2,000 and ₹2,800 for some time. A breakout on either side of ₹2,000-2,800 will determine the next move. Considering the time factor, it is better to exit this stock and accept the loss.

I have bought Bata India at ₹1,354. Should I continue to hold or exit?

James AJ

Bata India (₹1,199): The stock has been in a strong downtrend for more than three years now. There is no sign of a reversal yet. Immediate resistance is in the ₹1,250-1,300 region. Support is at ₹1,150-1,100. If the stock manages to sustain above ₹1,100, a corrective bounce to ₹1,300-1,350 is a possibility. A break below ₹1,100 will see Bata India share price tumbling towards ₹900-850 in the coming months. A possible bottom can be found in this ₹900-850 region.

Ideally, the stock has to rise above ₹1,600 to indicate a trend reversal and turn the outlook bullish. Only then a rise back to ₹2,000 and higher levels will come into the picture. You can accept the loss and exit the stock now. Maybe you can consider buying it again when the price falls to ₹900-850.

I have shares of IRB Infrastructure Developers. My purchase price is ₹53. What is the outlook?

Meghna, Mumbai

IRB Infrastructure Developers (₹45.60): The stock has been in a strong downtrend since June last year. There is room for the share price to fall more. Resistances are at ₹50 and ₹52. IRB Infrastructure Developers share price can fall to ₹36-35 in the coming months. But a fall beyond ₹35 is less likely.

A bounce from around ₹35 and a subsequent rise past ₹50 will confirm the trend reversal. That will have the potential to take the share price up to ₹85 over the next couple of years. If you can hold the stock for next two years, buy more at ₹38. Keep the stop-loss at ₹28. Revise the stop-loss up to ₹45 when the price goes up to ₹53. Move the stop-loss further up to ₹58 when the price touches ₹70. Exit the stock at ₹83.

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Published on May 3, 2025