Analysis: SESAGOA

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.


Oscillators RSI and CMO are at currently at 53 and -10 are in no men’s land.

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’s average correlation of 0.63 with the Nifty is positive. The stock will be able to replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]


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.

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