Despite seeing a steady declining trend last week, the Punj Lloyd ( Rakesh Jhunjhunwala is holding Punj lloyd)managed to hold on the crucial levels of Rs141, amid extreme volatility. The short-term trendline is acting as a strong support since last week of October 2008.
The stock has bounced off from the above-mentioned levels on three occasions. Below that, Rs132 appears as formidable support though; the stock went down by over 4% on Monday. The downside persists till around Rs132.
As and when there is a burst of short covering, it could rise again till around Rs165-170. It has the potential to move till Rs180 before it runs into resistance. Maintain a stop loss of Rs131 and go long. Increase the position if it closes above Rs151.
As per Sep 08 share holding pattern of the company, Rakesh jhunjhunwala is holding 5,040,000 shares