Today’s pick is [stockquote]SESAGOA[/stockquote]. For most part of the year since Feb, the stock has been in a downtrend. It firstly found support near the 180 levels, but after penetrating that level it has found support at 160 levels. And a reversal of roles is starkly visible with the support turning into a resistance for the stock. In the last three months, the stock moved – 2% against 7% as that of Nifty’s.
MACD line and signal line have been moving quite close for a long time, and MACD line has just cut signal line in a bullish manner, suggesting a near term bull run for the stock.
The long-term and short-term GMMA lines are very close to each other and are unable to suggest any direction.
SESAGOA has a historical volatility in the range of 0.3 to 0.9. The scrip’s volatility is currently in the lower end of the range and hence is not a concern.
Looking at these technicals a short-term buy is suggested. A longer-term call could be made after a reaction against the 180 levels is seen.