Monday, September 7, 2009

High Risk Buy: Aban Offshore & Ind.Bull.Real Estate

Charts Courtesy:

Aban Offshore- Deployment of Jack up Rigs led by Increased Spending from Oil explorers on Higher Crude Prices
Oil exploration services provider Aban Offshore witnessed a huge 25-30% up move during last week on the back of positive announcement of deployment of three newly build jack up rigs in the Middle East for a contract worth Rs.2925 crore spanning 3 years duration. Apart from that the company has also entered into a deal for deployment of a rig in Latin America.
What Next after a Huge Surge Last Week??
Coming to technical views on Aban Offshore, as has been pointed out in the chart, the stock has sought crucial support at lower levels around Rs.1520 mark after a huge surge in its stock price on announcement of deployment of its jack up rigs. The stock seemed extremely over-bought over the past few sessions and hence consolidating in Rs.1500-1650 range for the time being.

Usually, after such a big surge it is unlikely that the stock gets dragged down atleast over a period of short-term horizon. In fact, the stock is expected to register incremental gains over a period of time once the consolidation phase is over. High Risk traders can initiate long position in the counter at current levels with a stop loss of Rs.1520 and target as mentioned below:

Aban Offshore: High Risk Short-term Trade
Accumulation Zone: Rs.1560-1590
Stop Loss (SL): Rs.1520/-
Targets: T1 1670, T2 1785

Note: This trading call has been tagged as 'High Risk' Trading call not due to its sharply surged stock price in recent past, but due to the reason that the Support and Stop loss levels for this stock are placed quite near to the current market levels. Looking at the highly volatile fluctuation in the stock price of Aban Offshore after a huge surge, a fluctuation of 3-4% in the stock price on either side can't be ruled out during a volatile market session.
Indiabulls Real Estate: High Risk Short Term Trade
Accumulation Range: 255-260
Stop Loss (SL): Rs.247
Targets: T1 Rs.270, T2 Rs.285
Disclaimer: All data, content and/or reports posted by Viral Rajnikant Dholakia on this site are only for information and educational purpose of visitor/readers of this blog. It does not constitute to be a recommendation/offer/advice to buy or sell assets/securities in any form. Individuals/organizations are requested to take an informed call by consulting their Financial Advisor before acting on any matter/data published on this blog. This blog does not warrant of any kind of accuracy, adequacy and completeness of data, ideas or thoughts published in it. This site and Viral Rajnikant Dholakia assumes no responsibility or liability or loss or damage of any kind/nature for your trading and investment decisions and its consequent results.


Shabu's said...

Excellent Viral.... I am closely watching your authenticated tips, but not yet tried much, but now onwards.. I shall..., u made almost 90% genuine recommendations...


Viral Rajnikant Dholakia said...

Dear Shabu,

Thank you for the appreciation.

I keep striving with the best possible from my side to publish calls, where the basis of recommendation is reasonably reliable based on stock price's chart movement.

If the base (read idea) on which the charts are predicted goes wrong, the call may go haywire.

I am also trying my best to update major points like Stop loss, trailing stop loss, targets & accumulation zones in the interest of the traders, at the best of my ability.

If you've not 'Traded' before, it is advisable to do 'mock trade' or 'paper trading' before actually plunging into trading on calls on this blog.

Lastly, i feel assured that somebody is tracking my calls, when I receive their comments.

Culutre blog said...

Viral. thanks for your blog. it is extremely useful. A few individuals such as yourself, Rajeev (beating the dalastreet) and superstar are helping investors. thanks. I do not trade. but would like to buy for long let me know whether I can take position in the following scrips at CMP.
-South Asian Petrochemicals
- Classic diamonds
- Austin engineering
- Vijayabank
-Suryachakra power
thanks in advance.

Viral Rajnikant Dholakia said...

Dear Mouli,

Thank you for your kind words of Appreciation. Regarding long-term investment Accumulation, I truly feel that this is not the time for investors to indulge in buying from long-term perspective.

Correction is inevitable over medium term horizon. Markets can not keep moving up unilaterally for all times. The ongoing rally can be simply termed as a 'Liquidity' led rally aided by squeeze of positive sentiment after a lots of pessimism in last 1 year. Wait with patience & you'll be rewarded by lower prices.

Most of the stocks mentioned by you are small caps in nature. It is recommendable to stick with large caps & mid-caps rather than small caps when an intermediate downturn is witnessed.

Culutre blog said...

Thanks a lot Viral. your advice is worth following. Thanks once again for such a quick reply. - Mouli

Shabu's said...

Dear Viral,

Thank you for the reply. I will surely try some more.

Chethan Shetty said...


Viral...the so called BULL is an excellent analyst specially in technicals. I appreciate for the time and effort he puts in analysing the stocks and charts and more importantly sharing it with us..
Well, i feel he is very clear with his fundas about technicals...Your recomendations were 92% right and the chart interpretations are just perfect. IBReal is been tracked since past one year and i feel what bulls has written is just perfect. I am tracking Videocon, SREI, ranbaxy and also Aban..its just following the chart like a leading indicator.

Thanx for the advice.