Near-term outlook turns negative for Sesa Goa

K. S. Badri Narayanan | Updated on May 08, 2011

What is the apt strategy for Sesa Goa May futures bought at Rs 292?Vijay

Sesa Goa: The last week fall changed the outlook to negative for Sesa Goa. The counter is ruling near its support level of Rs 289. A conclusive close below that could bring down the stock towards Rs 262, where it finds a major support level. A close above Rs 331 has the potential to lift the stock towards Rs 360, while immediate resistance appears at Rs 302.

F&O pointers: The Sesa Goa futures witnessed a marginal accumulation of short positions on Friday. Option trading indicates a neutral view, as calls and puts accumulated open interest. This indicates the stock could move in a narrow range.

Strategy: Exit. If you are willing to take a risk, hold it with a stop loss at Rs 289 (spot price on a closing day basis) for an initial target of Rs 302.

NOTE: The analysis and opinion expressed in this column are based on F&O data available at this point of time and on technical analysis based on past price movements. There is risk of loss in trading.

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Published on May 08, 2011

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