Mukhesh Ambani promoted Reliance Petro Rs 83 is likely to be under selling pressure following the news reports that US oil major Chevron is likely to
exit the venture citing a fall in Oil price. Companies owned by Vendanta resources, Sterlite Ind, Sesa Goa and Hind Zinc might be sluggish, as Income Tax
department has slapped the group with a Rs 900 Crore tax bill
The stock of Hindustan Const (Rs 41) might see some relief as the group has called off a merger of its subsidiaries following resistance by some key share holders.We advice investors in Spice Communications to exit the stock at Rs 86 to Rs 90 levels, as the stock has moved up more than 200 percent in the past week
Aditya Birla Nuvo (Rs 451.10): Sell
We recommend a sell in Aditya Birla Nuvo from a short-term trading perspective. It is apparent from the charts of the stock that it has been on an intermediate-term downtrend from its August 2008 peak of Rs 1,422. Moreover, the stock has been on a long-term downtrend from its January 2008 peak at Rs 2,500. Since then, the stock has been forming lower peaks and lower troughs.
In mid-January, the stock resumed its intermediate downtrend by breaching the 21-and 50-day moving averages. Daily and weekly relative strength indexes are featuring in the bearish zone. The price rate of change indicator is also featuring in the negative territory, indicating selling pressure. The daily moving average convergence and divergence is steadily declining in the negative territory.
Considering that the intermediate-term down trendline continues to be intact, we are bearish on the stock from a short-term horizon. We anticipate the stock to decline until it hits our price target of Rs 405. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 473.
Buy Maruti (584) SL 578
Target 596, 600