Short Cairn India around Rs 290-292: Gupta

Gupta told CNBC-TV18, "Cairn India is a good example of long liquidation. If you look at the last five-six months from June 2012, we saw people who were taking a lot of bets on a better risk-reward in the stock were going long around Rs 300 and were looking for the better target. Eventually it did not move beyond Rs 340 at all and finally now in the month of February we saw the breakdown below Rs 300."

He further added, "All of these long traders have stuck up in the stock and you will see more closure of open interest (OI) which can drag the stock further down. We saw some retracement towards Rs 310 but again it has come below Rs 300. So, I feel around Rs 290-292 one can create the short positions. Keep your stop loss at Rs 298 and look for a target of Rs 274."

The company's trailing 12-month (TTM) EPS was at Rs -1.12 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was -. The latest book value of the company is Rs 167.12 per share. At current value, the price-to-book value of the company was 1.72.