Sell Essar Ports at CMP with a Stop Loss of 90.00

Investors with a short-term perspective can consider selling the shares of Essar Ports. The stock declined about 4.6 per cent on Tuesday. During this fall, the stock breached the 61.8 per cent Fibonacci retracement support at Rs.87.10. This could keep the contract under pressure and any bounce-back could attract fresh sellers.

Although there is support at Rs.82.5, Tuesday’s price action suggests that this level is likely to be broken. A break below this level can take the stock lower to Rs.80 initially and then to Rs.73. Traders with a short-term perspective can go short. Stop-loss can be placed at Rs.90 for the target of Rs.80. Immediate resistance is at Rs.85.5. A strong break above this hurdle will ease the pressure on the stock. Such a break can take it higher to Rs.87 and then Rs.90. This level of Rs.90 is a key short-term resistance. A strong break above it will turn the outlook bullish and can take the stock to Rs.100.