I have shares of Steel Authority of India (SAIL). What is the outlook?

Arun

SAIL (₹110.85): The stock has been in downtrend since May last year. But from a big picture, this is a correction within the broad uptrend that has been in place since April 2020. A crucial support is in the ₹100-98 region which is holding well for now. A decisive rise above ₹120 will mark the end of the correction.

That leg of rally will have the potential to target ₹180-200 over the next one year. A sideways consolidation between ₹100 and ₹120 is also a possibility before this rally to ₹180 happens. Buy SAIL now and accumulate at ₹104.  Keep the stop-loss at ₹84. Trail the stop-loss up to ₹120 as soon as the stock goes up to ₹145. Move the stop-loss further up to ₹150 when the price touches ₹165. Exit the stock at ₹180.

What is the outlook for Equitas Small Finance Bank?

Abinaya, Kochi

Equitas Small Finance Bank (₹59.25): The downtrend that has been in place since January last year is still intact. Indeed, there is room to fall more from here. The next important support is at ₹50 which can be tested in a month or two. Possibly the stock can find a bottom around ₹50. A bounce from ₹50 can take the share price up to ₹65.

A further rise above ₹65 will confirm the trend reversal. It can then clear the way for seeing ₹100 and higher levels over the long term. Investors with a long-term perspective, who can wait patiently can buy the stock at ₹53. Keep the stop-loss at ₹42. Trail the stop-loss up to ₹58 when the price goes up to ₹66. Move the stop-loss further up to ₹70 when the price touches ₹80. Exit at ₹95.

I had bought shares of Websol Energy System at ₹1,594. What is the outlook? Should I continue to hold or sell?

Ronak Sahai

Websol Energy System (₹920.35): Any position in the market should never be taken without a stop-loss in first place. We have been reiterating the importance of having a stop-loss in this column frequently. You have made the entry into this stock after the price had rallied very sharply in a short span of time. Ideally you should have exited the stock when the price fell below ₹1,250. There is support near ₹800 now.

But we may not get a strong rally towards ₹1,500 and higher as was seen in 2024. You can consider two options. First is to exit the stock immediately. Second option is to have a stop-loss at ₹770 and exit on a rise at ₹1,160. If this rise does not happen, then adhere to the stop-loss and come out of the stock.

What is the outlook for Bharath Electronics (BEL)? Can I buy the stock now?

T Raveendran, Chennai

Bharat Electronics (₹277): The stock had made a stellar rally from around ₹20 in 2020 to a high of ₹340 in July last year. Since then, the price has been in a correction phase

With in the broad uptrend. A possible flag formation on the chart keeps alive the broader uptrend. Crucial support is at ₹230. The outlook will turn bearish if the stock breaks below this support. Such a break can drag the share price down to ₹180 or ₹160. Also to indicate the resumption of the uptrend, the stock has to rise past ₹310.

Only then the upside will be open to see ₹400 and higher levels. So, for now, stay out of this stock. You may look to enter it after the price breaks above ₹310. Keep the stop-loss at ₹280 and exit the stock at ₹400.

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