Apr 21, 2018

ENGINEERS INDIA : Short To Mid Term View For Investors & Traders


ENGINEERS INDIA :
CMP : 152.50
View: Exit/avoid investments, buy put calls, sell futures
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As you can see in the chart, the monthly chart is not looking very good, the price to earnings ratio is also high around 25 for a public sector company which is not guzzling cash or in more or less infrastructure related businesses. Now election coming up next, such PSUs with macro businesses are going to get discounted little by little.
There is support around 145 levels, from which it might bounce back. But we believe ultimately it may go and test the major moving averages which are way down from current levels. And any correction in broader markets or sideways consolidating markets with dampened investor mood can also make it slide slowly to those levels.