See 7-10% downside potential in oil and gas space, says Gautam Shah, JM Financial.
Shah told CNBC-TV18, "This is typical of a downtrend and this is something that we saw in 2008 because the market keeps ignoring good news and latches on to bad news and the fact that despite the news flow on Reliance, it actually filled that gap it opened with a 50-60 jump and the fact that it actually filled that gap is a very negative development." He further added, "The technical set up for the entire sector is still very weak and sometime back we had spotted a breakdown on the oil and gas index at levels of 10,000 and I think even from the current levels the downside potential is 7-10%. News or not, I think this is the sector and a stock that could see a further downside."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!