Should I sell IDBI Bank shares?

Should I sell IDBI Bank shares?
Highlights

I purchased IDBI Bank shares two years\' back at Rs 100 having 500 shares.  I have lost Rs 19,000 till now.  I am planning to sell and book losses.

I purchased IDBI Bank shares two years' back at Rs 100 having 500 shares. I have lost Rs 19,000 till now. I am planning to sell and book losses. One month back it was at Rs68 and now it's going at Rs 60. Please advise if I should book losses or invest more and stay invested. I think IDBI is going in bad phase.
- Rajeev Kapur

The stock is trading in Rs 86-51 range since you bought. Technically, its hovering around 200 DMA. There is no visible trend in this stock as it is moving in parallel highs and lows. If the price comes out of this range or makes higher high by closing above Rs 91, then you can expect a reasonable profit. But the technical data suggests that in near term, the stock will reach Rs 51, where it will have support. Keep this level as your stop-loss in current scenario.

General rule is to keep 8 per cent fall from your buy price or 50 DMA as stop-loss. Fundamentally, this stock has poor earnings profile, has been making continuous losses in the last five quarters. Negative income growth and return on equity, rise in NPAs, are worrisome for the stock to hold. Either keep a stop-loss at Rs 51 or exit the stock by booking loss and enter into a good quality stock like HDFC Bank in same sector.

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