Dec 13, 2018

PIRAMAL ENTERPRISES LTD - Short Medium Term View


PIRAMAL ENTERPRISES LTD (PEL) – CMP - 2213

This is a great midcap group stock. It has scaled heights of 3200 mark and receded from thereafter on the back of the present 2018 market route, however recovered and stabilized like the rest of the market during the last two months.
The stock took support on weekly chart on its 200 DMA and is hovering around 2000-2100 mark. We believe it to give good return over next 12 months. It’s a good company to invest for financial planning goals portfolio building as well. In a good short-term up move it is expected to surge to its 100 DMA of around 2500. The MACD situation is not as supportive, however the sideways type of market will prove to be non-beta for the stock.

Having said that, the stock being a core midcap, has high beta value and may gyrate along with the benchmark indices and not tend to outperform in the face of underperformance by the rest of the markets. Read different article on overall market outlook for the next 12 months with spanning major events such as the Loksabha elections of 2019 and the USA-China tariff war as well as the USA equity markets hitting a speedbreaker.


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