The fortunes of Jindal Drilling depends on the movements of crude prices. That makes it a cyclical company. The rig rates can fluctuate depending upon the crude prices and demand for drilling rigs. In recent times the stock price of Jindal drilling has had a good run up, after breaking out above its crucial resistance of 168 which was a 4-5 year high. Above 168, it quickly went up to 260-270 and has cooled off to 190 kind of levels in the carnage of past few weeks. On the upside, 235 and 305 remain crucial multiyear resistances. In the most recent upmove stock price posted highs in range of 260-270, but could not hold on and broke down.
Personally I would avoid these kind of companies where my investment thesis lies in crude prices which these days are influenced by a lot of global factors.
I feel the current correction has thrown up some wonderful opportunities in many sectors and stocks, which I feel offer much better risk reward equations.
I have been looking at the quarterly results of a lot of small private banks and I think many of them have posted superb numbers and this has been the case since past 3-4 quarters now. And whatever has been promised in past quarters has been delivered. So fundamentally speaking a lot of them seem to offer good opportunities. On the charts though, very few charts offer clear cut bottoming/breakout patterns. This can happen during early phase of accumulation, or may be my view is wrong.