Sterlite Industries

26/09/2011 23:19

With strengthening US Dollar, metals have started under-performing with wide margin against the indices.  Being high beta stocks, the down move is also sharper.

Now the stock Sterlite is well within the down trend and approaching towards its support level of Rs 105.  The stock needs to take support at the level of Rs 105 and should be traded heavily near the price to ascertain that it has still power to go up, even if there is no action on price front.

The other end of the story is : In case the stock breaks down below Rs 104, it will hardly get strength to hover around Rs 70 except the psychological level of Rs 100.  This scenario will have more probability when the dollar index will comfortably trade above 80.