Query corner: Shriram EPC

Shriram EPC (Rs 196): This stock has the penchant for making sharp jerky moves and then going in to prolonged periods of sideways movement.

The medium-term trend is however up and investors can hold this stock as long as it trades above Rs 130.

Investors should adopt a cautious stance for the short-term since the stock is nearing the key resistance zone around Rs 220. A downward reversal from here can drag the stock lower to Rs 150 again.

Conversely, a sharp move above Rs 225 will take the stock to the next resistance at Rs 260.

Investors with a medium-term perspective can book some profits if the stock struggles to move beyond Rs 260. Target beyond Rs 260 is Rs 300.