Tag: SESAGOA

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.

stock

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.

cor

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]

vol

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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Sunder’s List

The biggest news over the weekend was the merger between Sterlite and Sesa Goa. Sesa Goa will issue three shares for every five Sterlite shares to create a new company with share listings in India and New York. Vedanta owns about 55% of Sesa Goa and about a 58% direct and indirect stake in Sterlite. Following the completion of the merger, Vedanta will own 58.3% of Sesa Sterlite.The deal is forecast to reduce Vedanta’s debt to $3.75 billion from about $9.65 billion after Vedanta transfers $5.9 billion in debt accrued from the Cairn India purchase to Sesa Sterlite. (WSJ)

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Sesa Goa to buy 51% stake in Western Cluster

Sesa Goa, a subsidiary of Vedanta Resources, on Saturday said it will buy 51% stake in an iron ore making firm in Liberia for $90 million in an all-cash deal.
“We are highly delighted with this opportunity to consolidate our iron ore business.
Elenilto has more than 100 exploration and mining licences with over 10,000 sq km area in Africa and Europe.

Sesa Goa to buy 51% stake in Western Cluster for $90 mn – livemint.com.