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Sell Essar Oil; target of Rs 130/126: Aditya Birla Money
Aditya Birla Money is bearish on Essar Oil and has recommended sell rating on the stock with a target of Rs 130/126 in its January 7, 2011 research report.
Aditya Birla Money is bearish on Essar Oil and has recommended sell rating on the stock with a target of Rs 130/126 in its January 7, 2011 research report.
"Essar Oil with its recent upmove has retraced back almost 61.8% of its fall from Rs 160 to Rs 116.75. After testing the 61.8% retracement Essar Oil has witnessed two consecutive bearish candles indicating that Bulls are now tired and unable to push prices further higher."
"Currently the stock is hovering above crucial support formed through the convergence of 21, 55, and 200 DEMA at Rs 135. Thus a breach below Rs 135 would lead to prices correcting lower towards 130-126. According to wave structure the last leg of the corrective upmove was a ending diagonal which seems to have terminated at the recent high at Rs 142. A breach of Rs 135 level would indicate resumption of downtrend towards prior low at Rs 116. Both Daily stochastic and RSI have given a negative crossover confirming the weakness in prices."
"Sell Essar Oil below Rs 135 for a target of Rs 130/126 with stop placed above Rs 140, says Aditya Birla Money research report.
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