Know Your Investment: Solution to your stock queries

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Know Your Investment: Solution to your stock queries

Ramani Bhavesh: What will be Coal India price in two years? Why is there is sudden downfall in the stock? Is there any reason behind it?

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All of yesterday's good work was undone at the markets. It was a volatile session, for the indices. The last hour of trading saw the markets darting downwards.

The Nifty slid 68 points to close at 5660...metals and oil & gas space were the biggest draggers. The Sensex too saw losses closing at 18,858 down 220 points.

Know Your Investment, moneycontrol.com's bid to help investors, is back to answer questions of 10 lucky Facebook fans.

This week, Shanu Goel, senior research analyst (equity) at Bonanza Portfolio Ltd, gave her outlook on various stocks that you wanted to know about.

Below are the questions you asked us on our Facebook page :

==>Ramani Bhavesh: What will be Coal India price in two years? Why is there is sudden downfall in the stock? Is there any reason behind it?

Goel: The sudden downfall in the stock prices is due to government considering a bill that mandates non-coal mining companies should pay 100% royalty to people affected by the project, while coal mining companies should pay 26% of their net profit to the local population who stand to get affected. The cash outgo will negatively impact the profitability of the mining companies and hence the companies like Coal India experienced a sharp fall in the market.

However the fundamentals of Coal India remains strong and the stock remains good long term buy.

==> Kapil Dudeja: I have bought Suzlon at Rs 120 a share in June 2009. Kindly advise on this scrip.

Goel: Suzlon has resistance around Rs 55-57 levels. A closing above these levels can take the scrip to Rs 62 and then 71 levels.

==> Vijay Meena: I have purchased 100 shares of RIL and 100 of Axis Bank . I want to know what will be the future of these stocks in coming next 6 months.

Goel: RIL and Axis Bank are both good long term bets. One can hold the stock for decent returns.

==> Devang Vohra: What is the target of Sintex India for next week?

Goel: A closing above 185 will take Sintex to Rs 191 and then Rs 195 levels. The downside support exists at 176 levels.

==> Jatin Kumar: I want to know about the future of NHPC . My relative purchased 1,000 stocks at Rs 27 a stock; what will be the stock's price in 3 months?

Goel: NHPC is taking good support around its 100 DMA at 24.30 levels. first resistance is at Rs 25.50 and then at Rs 26.30.

==> Rajiv Gupta: I have invested in Sterlite Industries at Rs 180 levels. When can I expect Rs 200 levels?

Goel: Below 168 levels, stock can come down to 162 levels. However a closing above 174 can take the stock to 182-184 levels. if it manages to close above 185 then stock can go up to 200 levels.

==> Paudel Homnath: I am holding IVRCL at Rs 155 for more than one year. Will I get back my cost?

Goel: Infrastructure and realty companies have been beaten down in the market for last couple of months. The stocks are currently witnessing a technical bounce back from their lows. The level of Rs 155 in IVRCL looks very farfetched. It is recommended to book your loss and invest the amount in fundamentally strong stock.

==> Sourav Pal: I am holding 2000 shares of Central Bank at Rs 132.30; any suggestion for a short-term plan?

Goel: There is strong support at Rs 125. A closing above Rs 131 will take the stock to Rs 134.30 and Rs 137 levels.