Buy Sesa Goa for long term, avoid Cairn: Ashwani Gujral
Sesa Goa has corrected quite a lot, it has gone through its own bear market.
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| Updated: Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, in an interview with ET Now talks about Sesa Goa and Cairn.
What is the call on Sesa Goa and Cairn?
Sesa Goa has corrected quite a lot, it has gone through its own bear market. So now on declines whenever you get it below 300, Sesa Goa should become a buy for longer term and finally you will get levels of closer to 380 on Sesa Goa. The downside is probably 20-30 bucks. Cairn I am not so sure that crude will continue to keep moving higher. Best of the crude price is probably priced into Cairn and with these deal getting over, the news aspect may also be getting over. So probably I would move into Sesa Goa which is much more attractive at these levels and although if crude moves to 200, Cairn will also move higher but clearly the high crude prices and given the way oil marketing is moving, I would much rather go there instead of going to Cairn.
What is the call on Sesa Goa and Cairn?
Sesa Goa has corrected quite a lot, it has gone through its own bear market. So now on declines whenever you get it below 300, Sesa Goa should become a buy for longer term and finally you will get levels of closer to 380 on Sesa Goa. The downside is probably 20-30 bucks. Cairn I am not so sure that crude will continue to keep moving higher. Best of the crude price is probably priced into Cairn and with these deal getting over, the news aspect may also be getting over. So probably I would move into Sesa Goa which is much more attractive at these levels and although if crude moves to 200, Cairn will also move higher but clearly the high crude prices and given the way oil marketing is moving, I would much rather go there instead of going to Cairn.
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