Short SAIL, says Jai Bala

Short SAIL with a stoploss above Rs 102, says Jai Bala, Chief Market Technician, Cashthechaos.com.

Bala told CNBC-TV18, "The metal stocks are actually looking quite negative, the sector as such though exception being Tata Steel which is actually ranging and if you look at the rest of the metal stocks they are looking like they are going to go down much lower and this is a very technical pattern that I am going to talk about SAIL, it’s called a fourth wave ABC pattern and the high of Rs 103 is an important high here and the stock has started to clock lower highs from those levels. The stock has actually broken down by going below Rs 95 and it has potential to at least scale above Rs 88 if not Rs 83. So you might want to place a stop loss above Rs 102 and go short on the stock here."
The company's trailing 12-month (TTM) EPS was at Rs 11.82 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 8.13. The latest book value of the company is Rs 89.75 per share. At current value, the price-to-book value of the company was 1.07. The dividend yield of the company was 2.5%.