Expect 10% decline in Punj Lloyd: Bhambwani

Technical Analyst, Vijay Bhambwani is of the view that one can expect 10% decline in Punj Lloyd.

Bhambwani told CNBC-TV18, "In Punj Lloyd I won’t rule out 10% decline from the current levels down to Rs 225-230 because that is where I expect the market in the absolute short-term to see some amount of short covering on this counter. On the upsides if at all the stock does decide to go up Rs 310 to Rs 320 will be a fairly stiff resistance for the bulls to overcome, now that will be kind of litmus test. Should the bulls manage to keep this counter above Rs 320 levels with higher volumes and increasing commitment from traders, which looks like a far cry from where the market is right now only then the counter actually turn for the better, till then it is likely to remain under pressure. If at all you are holding the stock in your portfolio the question you need to ask yourself is can you actually sit on it for the next two years at least one and a half years. If yes by all means hold, if not I think you should look for alternatives."

Disclosure: Analyst doesn't hold the above stock.

Source: MoneyControl