Equity Alert: Cairn India dn 4%; short-term support seen 190 rupees
MUMBAI--12:24PM--Shares of Cairn India were down 4% at 197.4
rupees as
crude oil October futures was trading at $92.05 a barrel on NYMEX,
down 3.82%
from Monday, dealers said.
"We would recommend avoiding this stock for the short term because
of
falling crude oil prices...we will have to see where crude oil prices
stabilise," said Sudeep Anand, analyst, Religare Securities.
Over the long term, he has a 'buy' rating on Cairn India, with a
one-year
price target of 308 rupees.
Another analyst at a domestic brokerage continues to remain
positive on
the company, but said if crude oil prices fall below $75 a barrel it
will be
a negative for the company.
"The moment crude touches $85 per barrel, stock can go fall to 175
rupees," said Deven Shah, dealer, Centrum Broking.
He said one could sell the share at these levels, and buy when it
is at
around 175 rupees.
"The stock has short-term support at 197 rupees, and then at 190
rupees.
Once the stock breaches 197 rupees, it will face fresh selling
pressure.
Short-term resistance is seen at 218 rupees," said Suresh Kumar Iyer,
technical analyst, Asit C Mehta Investment Intermediates.
So far today, 886,99 Cairn India shares have been traded on NSE.
Cairn
India September futures was trading almost at par with spot price,
with 5%
fall in open interest.
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