Punj Lloyd, a shallow fall to pull out the retailers from the stock?

Yes, Punj Lloyd falling along with broader indices in the last couple of days. When watching data, it is quite surprising that most of the selling is “operator based only”. Which clearly tells that some big guys tempting the retailers to grab more at the lower levels. Once, the panic is created then the retailers starts dumping it and big goons use the chance to grab more.

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To get the Be and Make’s 2010 outlook which absolutely bang on the target till now: http://www.stockstowin.in/2010/01/market-outlook-for-201014-01-2009-be.html

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Of course, the broader markets fell very sharply. Small cap index fell more than 5% which really a worrying factor for the retailers. Very interestingly punj Lloyd has not shown any such panic signal in the data.

Punj Lloyd’s Historical data:

The 10 day average volume:                          5669912

Today traded volume  :                                   3556812         

This is 38% less than 10 day average volumes.

The 10 day average delivery quantity:            1732158

Today delivery quantity:                                    868336

This is 49.8% less than 10 day average delivery quantity.

In FnO space also it is surprising that there is nothing happening in this stock.

The OI when the series started is at 25250000 which is 60% to the market wide position limit, after that the OI fell gradually and today was at 21842000 which is 52% to the market wide positions limit.

This is 13.5% less than compare to the series begin day. Generally when market swings in such wild manner the OI’s should increase at any point of time. In PUNJ, from the beginning of this series the OI is at 60%, further never OI not crossed the 60% despite such wild swings in the stock.

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To get the Be and Make’s conclusion in the initial report: http://www.stockstowin.in/2010/09/punj-lloyd-strong-multi-bagger-call.html

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What all this saying that, it is a shallow fall till now. History tells that in such cases stocks will bounce back very sharply so, it is purely an operator game rather than a delivery sell. There is nothing to worry on this stock despite the recent fall; nothing went wrong for the company. It is just falling along with the broader market, once markets start moving these types of stocks are in the front row to move up. Use this panic selling to buy the stock as much one can.

With thanks

Be and make