Aban stock over last 14 months has seen dramatic recovery from lows of Rs. 200 to all the way up to Rs.800+. In the process, it broke a significant barrier of 550-560 which it had failed earlier.
Here's the Weekly Chart
As you can see in the chart above: the level of 550-560 looks pretty significant over a long time frame. You can see how stock has stood above that level over last few months. The level has also gained significance on daily chart
Yesterday, stock was at 556 and today it bounced 3% from that level to show respect for the support. The big question: Has stock turned around for real or will it sink again considering oil market dynamics working against the stock.
Aban stock now is a difficult play. The interesting thing to watch is what it does from now: float or sink again. The hopefuls will buy near 560 with stop loss below 520..but the big question - will it work?
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers