Monday, November 23, 2015

Engineers India Significant supports are placed at Rs.200 and Rs.180

Following a sharp plunge from the key resistance level of Rs.245, the stock recorded a 52-week low at Rs.157 in late August and found support. 

Subsequently, the stock changed direction and has been in a medium-term uptrend. Last week, the stock zoomed more than 11 per cent with good volume.

The short-term trend is also up now. Moreover, the stock has breached its 50 and 200-day moving averages in this rally.

Investors with a long-term perspective can buy the stock on declines while maintaining a stop-loss at Rs.170.

Strong rally above Rs.225 can encounter resistance at Rs.245. The stock needs to conclusively breach the long-term resistance in the band between Rs.245 and Rs.250 to alter the intermediate-term downtrend and take it northwards to Rs.280 levels. Significant supports are placed at Rs.200 and Rs.180.

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