Sell Welspun Corp; target of Rs 185/180: Aditya Birla Money

Aditya Birla Money is bearish on Welspun Corp and has recommended sell rating on the stock with a target of Rs 185/180 in its March 8, 2011 research report.

"Welspun Corp has been trading mixed holding below the resistance level of Rs 210 over the last one week. The 14-day RSI and Stochastic (14/3/3) are moving sideways near the overbought territory and are exhibiting potential negative divergence. Also the said resistance is formed by the confluence of Fibonacci retracement, 200-day EMA and 200-week EMA. This coupled with negative divergence on daily indicators indicates that prices could see a downside correction in the near-term, however, a break below the support at Rs 201.45 is required to confirm the same and turn the sentiments weak towards Rs 192 and lower subsequently. Until then the sentiment would remain mixed and finds stiff resistance near Rs 210/212 levels on any gains."

"Sell Welspun Corp initially below Rs 201.40 and then on any rise to Rs 204 with a target of Rs 185/180 and a closing stop of Rs 210,

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