Go long on Cairn with stop loss around Rs 318-320: Bhamre

Siddharth Bhamre, Angel Broking advised going long on Cairn India with stop loss somewhere around Rs 318-320.
 
Bhamre told CNBC-TV18, “Cairn India is the stock which was not performing when most of the space was going up and people were slightly disappointed that the production number did not come well. However, my fundamental guy was saying that it was there in market since last one to one and a half months. But the stock reacted negatively despite crude going up. There is a strong correlation between Cairn India and crude oil prices.”
 
“We believe there are still good amount of shorts which are standing. As stock corrected around Rs 345 to Rs 350 levels, shorts were created. Yesterday, we saw some kind of short covering happening. I believe short covering and formation of long from current levels can take the stock higher,” Bhamre added.
 
Bhamre also said, “Fundamentally, we have a target of Rs 383 but as of now for trading purpose we believe the stock can bounce to Rs 350. So one can fix stop somewhere around Rs 318-320 and go long in this space.”