Cairn India may slip to Rs 370, says Karun Mutha, Senior VP and Head Equity & Derivatives Advisory, HSBC InvestDirect.
Mutha told CNBC-TV18, "I think there had been a lot of sector rotations and the rally is primarily driven by stocks wherein short covering is the phenomena of the day. We have seen that in technology stocks, banking stocks and hence probably Cairn India. The open interest on that stock was close to down by 9% and we expect the stock to take us close to Rs 370 levels.
The share touched its 52-week high Rs 388.25 and 52-week low Rs 250.00 on 10 Feb, 2012 and 26 Aug, 2011, respectively. Currently, it is trading -1.74% below its 52-week high and 52.6% above its 52-week low. Market capitalisation stands at Rs 72,610.26 crore.
