The stock witnessed knee jerk reaction and fell below it crucial support zone of 125 to 130 (As shown in the chart below).
The technical setup of the stock is also week as the 50 Day Moving Average line has pierced the 200 Day Moving Average line from above and the stock has broken the major support zone mentioned above. Also the stock is trading near its 52 week low of 112.
Fundamentally at the current market price of Rs. 121 the stock is little expensive and is trading at a PE multiple of 20 times based on expected EPS of Rs.6 for the current financial year. High institutional holdings and large ownership would continue to put pressure on the stock in coming months as the portfolios would want to shed some of their holdings in the stock due to poor financial performance.
Hence the investors should not hurry to get into this stock at this point of time as they might get it cheaper in coming months.