Aban Offshore is one of the oldest drilling companies of India. This company drill wells for the oil companies. The stock has outperformed significantly well over the past 10 years from the Rs.4 per share in 1999 to Rs.5400 per share in early 2008, since then the stock was on down trend making a low of Rs.221 in march 2009. We are very sure that in the near term the liquidity will be come back into this stock and we will again see the bull run.
At current levels we are bearish in ABAN as the CMP is below the 50 SMA, 200 SMA and the technical indicators are suggesting the short positions only. We will be going long only if the stock manages to close above the 635 level for at least two days. Positional target for this stock in long term will be 890 and 1220. While stop loss must be placed below 540 zone.