Prefer Bharti Shipyard and ABG Shipyard in shipping stocks: Angel Broking

Shardul Kulkarni, Sr. Technical Analyst, Angel Broking

Is any section there in the shipping stocks because a lot of the chartist were little short on Mercator for quite sometime but either of them have active charts and you can make a comment, Mercator Lines?

I would say that in case of Mercator Lines on the lower side the stock has taken decent support at around 42 levels so probably 42 levels is something you should watch out for and below that you can place your stop loss. If there is any reversal pattern at 42 yes you might go long in this particular stock. If you ask me personally the preference for shipping stocks is towards Bharti Shipyard and ABG shipyard. ABG specifically going forward we expect the stock to move upwards. A little bit on the downside which is Rs.230 or Rs.225 is where you should ideally buy into the stock and expect upside going forward. Bharti Shipyard also we are looking at similar moves and in Bharti Shipyard we see a clear channel pattern. So yes you can buy into this particular counter. The stop loss on the lower side should be at around Rs.220.