Piramal Enterprise Ltd. is the largest company of the Piramal Group with a diversified portfolio ranging from Health Care Management, pharmaceuticals to Financial Services. Take a look at our analysis of its chart and the concluding trading pattern.
Daily Chart
On analyzing the daily chart of Piramal Enterprise Ltd.(PEL), we can see that it is trading between the levels of Rs 850-1000 which are also its Fibonacci levels, and hence it is the deciding zone for PEL.
If the stock gives a breakdown from Rs 850-860 level we may see the stock dragging down towards Rs. 805 and if the stock does not sustain at the same level, it might go further down towards Rs 600 which is the worst-case scenario.
Rs. 805 is the crucial support level for PEL and failure to sustain it will also give a breakdown to its double top pattern and a fall of minimum 100 points may be seen.
Weekly Chart
Coincidentally, the Fibonacci levels seen in the daily-chart are also the levels of support zone in weekly chart making it a very important and a deciding zone.
Recommended Trading Patterns
For Long term investors
One can enter partially and take a position in the stock between Rs.800-850 and add others either at 600 or after confirmation at the breakout of Rs.1000
For Traders 1) Can go long between 810-850 by keeping 800 as a strict stop loss 2) Can go short after the breakdown of 800 level 3) Can go long at 800-820 levels on confirmation by reversal candlestick pattern 4) Can go long above 1000 after receiving a perfect breakout
Please Note: PEL is declaring its quarterly results tomorrow (i.e. 11th May 2020), hence it may trigger a breakout or breakdown depending on the quality of results.
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