Aban Offshore nosedived 12.4 per cent accompanied by above-average weekly average volumes in the previous week. However, it is currently testing its key medium-term support band between Rs 330 and Rs 340, from with the stock had rebounded in mid August and early October this year. An upward reversal from the aforesaid support band can take the stock higher to Rs 390 or to Rs 430 in the medium-term. Key resistance above Rs 430 is at Rs 500. The stock is trading well below its 21- and 50-day moving averages. Both its daily and weekly indicators are featuring in the bearish zone.

Nevertheless, breach through the support band will reinforce the long-term downtrend and drag the stock down to Rs 300 and then to Rs 225 in the ensuing months. Investors should avoid initiating fresh long position if the stock breaches the key support band as the stock can turn volatile and decline steeply.

Steel Authority of India (Rs 82.2)

SAIL continued its decline and plunged 12.2 per cent with above average volumes last week. However, the stock is just trading above its significant longer-term support zone between Rs 74 and Rs 80.

The stock has been on a long-term downtrend ever since peaking out from its April 2010 peak of Rs 258. A reversal up from the stock's significant longer-term support zone will take the stock northwards to Rs 90 and then to Rs 100 in the medium-term. On the other hand, conclusive penetration of the key support will pave way for a decline to Rs 65 and then to Rs 55 (November 2008 low) in the medium-term.

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