Sell ABB Future at Rs 793: A C Choksi

A C Choksi is bearish on ABB Future and has recommended sell rating on the stock with a target of Rs 738 in its July 09, 2012 research report.

Holding period: 2-3 week

• After the sharp rise from 690 to 821 (spot), the stock breached a support trendline and sustained below that level.
• Momentum indicator RSI is showing negative divergence pattern in daily chart, which indicates a possible trend reversal on cards. Negative crossover of RSI and its average also indicates weakness in the stock.
• MACD and Stochastic Oscillator also took downward direction and moved below their respective averages, which supports the sell call on the stock.
• It also took resistance of upper line of Bollinger Band (20,20,2) and came down. And we also see “Bearish Engulfing” on Friday in daily chart. All these indicators and patterns confirm that the trend is short term bearish.

FIIs holding more than 30% in Indian cos

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