Investors with a long-term view can remain invested in HDIL with a stop-loss at Rs.80.

Housing Development & Infrastructure (Rs.109.2): Since bottoming out at its August 2013 low of Rs.26, the stock has been trending upwards. Nevertheless, it met with a key long-term resistance at Rs.120 this February. Following a blip above this resistance in April, the stock failed to decisively close above it. While the short-term trend is down, the medium-term trend continues to be up for the stock. As long as the stock trades above Rs.90, it has the potential to break through the Rs.120 resistance level and begin trending northwards in the coming months.

But a conclusive fall below Rs.90 will mar the uptrend and drag the stock down to Rs.80 and then to Rs.60 eventually. On the upside, an emphatic breakthrough of Rs.120 can push the stock higher to Rs.140 and then to Rs.175 levels in the long term. Investors with a long-term view can remain invested with a stop-loss at Rs.80.