ABAN on last Friday has given a very good closing above 381 level, so we bullish in this stock for short term view and we would suggest intraday traders to buy this stock near 388 for intraday targets as 394 and then 399 levels, as the pull back was confirmed with the help of open interest data of ABAN September futures contract. We have seen the short positions being covered and fresh long build up seen on last Friday. Today the stock was trading higher by about 2% at CMP of 388 level. We also recommend traders to place their stop loss around 385 level today. A strong support do exist in this scrip near 386 level. So our today’s strategy is to keep looking for buying opportunity in ABAN above 385 level on intraday trading basis. We are trading in the direction of the short term trend, Hence we will look for buying opportunities till the stock is trading above 385 level. High risk traders can Long ABAN September futures contract or buy ABAN Call options contract for intraday trading. Today stock is trading higher by 2% and we expect more buying coming in this stock. Taking a look at the F&O open interest data we see that ABAN Futures added more than 68,000 shares in open interest, where as total open interest was at 19 lakh shares. Taking a look at the technical analysis charts we see that the trend for long term is bearish as seen on the weekly chart, for short term there must be some pull back rally, but for intraday a bounce is most probably possible. So ABAN stock may attract more buyers on every dip today. Volume is lower than 5 days average volume, so this is to area where traders should be cautious. Technical indicators are however in favor of this trade, ABAN stock. Our advice to investors is to stay away from ABAN as it is still on a long term down trend. So if any investor is holding long positions then we would recommend to exit the long positions in ABAN stock and wait till there is clear up trend again.
How to trade ABAN today:
Buy ABAN near 388 level for intraday trading targets as 394 and then 399 level, stop loss should be placed just below the 285 level. Traders can also place their trades on ABAN futures, but there is huge discount in futures, so stay cautious.