Short Sesa Goa with a target of Rs 142: Agarwal

Shubham Agarwal, CMT, AVP - Sr Technical Analyst, Motilal Oswal Securities is of the view that one can short Sesa Goa with a target of Rs 142.

Agarwal told CNBC-TV18, “The long term chart of Sesa Goa was forming a rounding bottom kind of a scenario. There was a very good support which was placed at Rs 167, so people who were looking for the metal space to go up might have been keeping that stop loss on the stock. But eventually that low has been broken down now and because of the news flow that is also building up which is negative for the stock. So, the rounding bottom formation has already failed which is giving us a very good target on the downside for Rs 142, so an investor having a medium term prospect can look to go short even at the current level.” He further added, “Recently we saw a gap down which has been created on the stock which we feel that will not be filled up. So, with a stop loss of Rs 173 even at the current level we can look to go short on the space for a target of Rs 142. Even on the relative strength terms we have been pointing out for a very long time that metal is something which is an underperformer and can continue to do so. So, stocks from the metal space are clearly an avoid at this point of time and we feel that there is further downside for stocks like Sesa Goa, Sterlite and Tata Steel.”