Stayed with socialist, taking direction (7)
I believe the answer is:
resided
'stayed' is the definition.
(I've seen this before)
'socialist taking direction' is the wordplay.
'socialist' becomes 'red' (socialism is often associated with the colour red).
'taking' indicates putting letters inside.
'direction' becomes 'side' (I can't justify this - if you can you should believe this answer much more).
'red' enclosing 'side' is 'RESIDED'.
'with' acts as a link.
Can you help me to learn more?
(Other definitions for resided that I've seen before include "Abode" , "Dwelt" , "Sojourned" , "stayed" , "Settled" .)