Sesa Goa has been on a downtrend since its peak of Rs 495 witnessed during the second week of April 2010. During past, the stock on repeated occasions found support around 100-day DMA. This week, we saw the stock breaking below its 100-day DMA. The recent decline was accompanied by higher volumes. Friday’s decline confirms the breakdown from the multiple support zone.
Whenever, the stock breaks one moving average, then the next moving average becomes the next target. So a decline to 200-day DMA is not ruled out in Sesa Goa. In the medium term, every pullback is likely to face resistance around Rs 412 (100-day DMA). Traders are advised to short between the levels of Rs 370-378 with SL of Rs 387 for target of Rs 355," says IIFL stock research report.
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