We are in a very strong Bull market. And Today's Punj Lloyd 15% move is just a small example of that.
What happened?: Punj Lloyd CEO appeared on CNBC made this statement:
Punj Lloyd has already booked orders worth USD 800 million and he hoped to book new orders of more than USD 2 billion by August, for this financial year. Source
Now if CEO would have made this statement a year back - market reaction would have been nothing. But today, it was greeted with 15% move.
How is Punj Lloyd looking on the Weekly chart?
Punj Lloyd has made good progress from lows of 24 in August 2013 to now at 56. With today's move - it has reached 200 week ma - level which it broke in October 2009. Now, the next level of resistance is 65. Technically, stock is moving up and considering how long stock has underperformed, the turnaround can be very sharp. The only issue: in near term - stock looks extended and there is no safe level to buy as of now. The 50 day moving average stands at 38.
The blogpost is purely for educational purpose. Please do not make any trade based on this article. Please do your own due diligence.