Buy Cairn India at CMP of Rs 306: Equentis

NEW DELHI: Brokerage house Equentis in its technical outlook has advised investors to buy Cairn India stock at the current market price (CMP) of Rs 306. According to Equentis, the Cairn India stock has been trading in a downward direction for the last few trading sessions.


"The stock price is finding good support between Rs 288-285 range. It is trading in Downward Channel Formation," the brokerage said in a report. "On daily chart prices are finding reversal in upside between Rs 301 - 303 range. Last candle on the charts is bullish candle followed by previous bull candle confirms trend reversal; prices may face some fresh buying / short covering from current levels," it added.

Equentis said that a buy signal will generate above Rs 303. "The stock price made a recent low of Rs 285.80. Decent and sharp impulsive move of 3-5% is expected in near term from current levels. Prices had given good distribution in its corrective wave from Rs 349 to Rs 285.80," it said.

Equentis opines that "the daily strength of the stock is in a positive zone and providing bullish cross over, velocity indicators are in bullish cross over and showing bullish divergence suggesting impulsive move from current levels." Accordingly, trend indicator is supporting buying in the stock for short to near term.

The brokerage has advised keeping a stop loss below Rs 298 with targets of Rs 314-322.




The brokerage however, has expressed some concerns as well. "If prices sustain below Rs 298 then fresh Sell Positions may initiate in the stock at Rs 298 for the target of Rs 288-280 with stop loss of Rs 303."