Aban is a stock to nibble at: CK Narayan

In a chat with ET Now, CK Narayan, President Treasury, Sharyans Resources, talks about Aban Offshore.

ET Now: Aban Offshore, 700, do you see that on the charts because fundamentals suggest likewise?

CK Narayan: Aban has been into this really humongous downtrend for the past several years but if you look at the longer term charts of the stock, it is something, which is attempting to form a bottom. Now having said that, of course the bottom is a fair distance away, it has made a kind of double bottom on the charts around 625-640, around those zones but then this shape will actually be validated by the market only when it is able to overcome and exceed and hold above the highs in-between these two lows, which is at about 900 to 915 levels.

Looking at the kind of downgrades, etc., and whatever numbers have flown in and the news flow has been fairly tepid. It would seem like the base building process is not yet over, so we may get a retest of your low, so 700 price is not very difficult to achieve seeing that the lows had been as much as about 625-630 but I see the stock in a range but for really longer term plays at the lower levels, Aban is a stock to nibble at. We should be looking at it a little more positively and may be the downgrade that you have now could send the stock down a little but I would certainly look at it from a positive angle around 700 levels. The speed will come much above 900 but then 900 is also a fairly large range for any kind of investor.