December 10, 2011:  
Please discuss the medium- and long-term outlook of NTPC and Power Grid Corporation of India.
Anil Kumar Ray
NTPC (Rs 166.1): This stock recorded the peak of Rs 241 in December 2009 and is trudging lower ever since. The sequence of lower peaks and troughs since this peak are quite daunting. Investors can, however, take heart from the fact that the stock is halting at the critical long-term support zone between Rs 150 and Rs 160.
As long as this zone remains unviolated, the possibility of a rally beyond Rs 240 remains open. Conversely a strong move below Rs 150 will mean that the stock can decline to Rs 126 or even Rs 113 over the medium-term.
If the stock sustains above Rs 150 in the upcoming weeks, it can move up to Rs 187 or Rs 208 over the medium-term. Investors with short- to medium-term perspective can divest their holdings at these levels. The long-term view will turn positive only on move above Rs 208. Subsequent targets are Rs 240 and Rs 290.
Power Grid Corporation (Rs 98.6): Power Grid Corporation has gone nowhere over the last two and half years.
The stock moved in a wide range between Rs 90 and Rs 120 since June 2009. The long-term uptrend that began in October 2008 from the low of Rs 52, however, continues to remain in force.

This uptrend will be threatened only if the stock goes on to record an emphatic close below Rs 80.
Continued movement in the afore-mentioned range will mean that the stock can break out to Rs 128 or even Rs 172 over the long-term.
Medium-term resistances for the stock are at Rs 115 and Rs 128. Investors with a medium-term horizon can divest their holding if the stock struggles to move above the first hurdle.
The stock will receive support at Rs 91 and Rs 82 in the months ahead. Investors can accumulate the stock in declines with stop at Rs 80.
I have shares of Kalyani Investment Company. Will you please tell me the prospects of this stock for the long term?
K Kanagaraj
Kalyani Investment Company (Rs 411): Since Kalyani Investment does not have very long history, giving a prognosis on the long-term prospects of the stock is not possible. The stock was in a downtrend charting lower peaks and troughs since February this year.

This downtrend halted in August at the support around Rs 400 and the stock is attempting to build a base in the zone between Rs 400 and Rs 600 since then.
Investors with a lower risk appetite should divest their holding on a decline below Rs 400 since it is hard to determine where the next halt can be.
Key medium-term resistance is around Rs 670. Fresh purchases are recommended only on a strong move above this level. Subsequent targets are Rs 750 and Rs 825.
Please give the technical outlook for Indowind Energy and Orient Green Power Company.
Rajmangal
Indowind Energy (Rs 7.4), Orient Green Power Company (Rs 10.3): The chart patterns of both Indowind Energy and Orient Green Power are identical. These stocks have been constantly recording lower peaks and troughs and are currently trading close to their life-time lows.

It is hard to envisage a meaningful rally in these stocks anytime soon, and investors should have divested their holdings in these long ago. Those unfortunate investors who are still holding on to these stocks ought to switch out of them at this juncture.
Key short-term resistance for Indowind Energy is at Rs 30. Investors should consider reinvesting in the stock only if it records a close above Rs 68.
Corresponding resistance in Orient Green Power is Rs 16, that is, investors should consider investment in this stock only on a strong move above Rs 16.
Please advise me on the future outlook for Tilaknagar Industries.
Shalabh Dubey
Tilaknagar Industries (Rs 38.1): Tilaknagar Industries was a penny stock trading at a value of less than Rs 2 prior to 2004.
It shot upward in 2009 when it recorded the dizzying rally to Rs 148 by November 2010. The slide from these heights was equally spectacular and the stock is down to Rs 30 now.

It is obvious that this is not a stock that can be recommended to the weak-hearted. Investors with lower penchant for risk should steer clear of this stock.
That said, the stock is halting at the key support around Rs 30. Recovery from here can take the stock higher to Rs 65 or Rs 85 in the medium-term. However, a decline below Rs 27 will drag the stock lower to Rs 19 or even Rs 7.
I would appreciate your short- and long-term views on Polyplex Corporation.
M.M. Faquih
Polyplex Corporation (Rs 171.6): This stock has long-term resistance between Rs 120 and Rs 150 and this ceiling arrested rallies in 2004, 2005 and 2008. Polyplex Corporation broke past this hurdle in July 2010, and then it held traders spell-bound with a sharp rally to Rs 490 in just four months.
The market correction this year has, however, pulled the stock down towards this long-term resistance again and the stock recorded the trough at Rs 165 in October.
Immediate support for the stock is at Rs 160. If this level is penetrated, the former resistance between Rs 120 and Rs 150 will come into play. Investors can hold the stock with stop at Rs 115. Short-term resistances for the stock will be at Rs 231 and Rs 270.
Key medium-term resistance will be at Rs 300. This level needs to be crossed to imply an impending move higher to Rs 340 and Rs 380. It is hard to envisage a move beyond Rs 380 in the foreseeable future.
I am holding Reliance Capital at Rs 750. What is the long-term technical view on this stock?
R. Nagabhushan Rao
Reliance Capital (Rs 293.4): There appears to be no end to Reliance Capital's woes and the stock is unable to get a sustainable rally going since the peak recorded in May 2009. The stock is currently testing its long-term support at Rs 274 recorded in March 2009. If this level is breached, the stock could decline to Rs 150 and then to the long-term base around Rs 50.

Investors still holding the stock can, however, hope for a recovery from current levels, and hence hold with a stop at Rs 260. Recovery from this level can take it higher to Rs 407, Rs 488 or Rs 620. A sustainable uptrend is, however, possible only when the stock goes on to close above Rs 620. Next targets are Rs 680 and Rs 770.
Please advise short- and medium-term prospect of United Spirits.
B. Chawla
United Spirits (Rs 717.4): Both short- as well as the medium-term trend in United Spirits is currently down. The stock is trading well below its medium-term support at Rs 910, and fresh investments are recommended only when the stock goes on to close above this level. However, breach of the support at Rs 650 will mean that the stock can trudge lower to Rs 553 or Rs 425 in the medium-term.

Recovery from current level will, however, take the stock higher to Rs 900 or Rs 1,050 in the upcoming weeks. Medium-term view will turn positive only on a close above Rs 1,050. Next targets are Rs 1,200 and Rs 1,300.