PEL trade ideas
PEL, Learn & Earn (Fibo retracement)PEL after retracing to 61.8% level has continued is down movement. Good candidate to short below 828
PELPEL --- sHORT BELOW 823...INTRADAY TARGET 812...SWING T1 -764 T2 - 606
REASON...MORE OI REDUCE ON SHORT SIDE....
0.618 RETRACEMENT BREAKED
FOLLOW YOUR RISK MANAGEMENT...
DO YOU OWN ANLAYSIS BEFORE TAKING POSITION
Contraction of volatility Piramal Enterprise
(A.) Major Support & Resistance (Major Inside bar candle formation setup)
On 31 March 2020, a big candle with significant volumes was formed which might act as short term support & resistance. (Black Line)
(B.) Contraction of volatility (Minor Inside bar candle formation setup) - Very short term support & resistance
Contraction of volatility in the short term may lead to an increase in volatility which an intraday trader is looking for. (Blue lines)
(C.) At 1277 stock has strong resistance
(D.) Two gaps at
1150-1175
1341-1373
PEL, Learn & Earn (Symmetrical trinagle)PEL has broken from ST on down side and if crosses below 904 can move till 870 and further down.
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PEL Inside Bar TradeLong if it breaks the high of the previous day with a stop loss at the previous day's low.
Short if it breaks the low of the previous day with a stop loss at the previous day's high.
In case of gap up above the previous day's high or gap down below the previous day's low, please avoid buying it or selling it respectively. Follow the ending of the candle formed in first 5 minutes and follow ORB strategy.
PELFirmly believe that this stock might have seen its worst and has a very small probability that it will form a low below this month's low.
Fundamentally except the fear of NPA's there isn't much wrong with this stock. Has a robust pharma business which i feel is very valuable and now with the non compete removed it can grow leaps and bounds again. The promoter knows a thing or 2 about pharma having sold his last pharma venture for a massive profit.
On the financial side of the business the debt/equity is below one and all efforts are being made to reduce the cost of capital. One of the few NBFC's with enough ammo to actually inorganically grow its book its book in these markets and I'm sure Ajay Piramal will be looking at the same. The loan book might be allowed to restructure loans on a one time basis thanks to Covid which will be positive for the co too.
I would love to see this stock revisit its recent lows where I did buy a little bit (around 675 but barely 2% of my portfolio) but would like to scale it up enough coz of my belief that the promoter has always been transparent and has great pedigree to develop this company post the virus issues are out of the way.
Will surely buy more below 700 if the price does visit there once again.
Technically even after getting hammered the price did close above a key Fibo level which is also good. :-)
