PEL retreats on comments from broking houses

Piramal Enterprises dropped more than 3 per cent after Citi maintained a Neutral stance on the stock. The company is engaged in Financial Services, Pharma and Healthcare insights and analytics businesses.

On the contrary, Motilal Oswal maintained a Buy with nearly 19 per cent upside from the current levels of 3,099. Overall, the market pressure too weighed on the stock dragging it down from its all-time high level hit in the previous session.

Even Citi is seeing potential in the company provided it contributes better to the topline in the quarters to come. The company is already building up capacity in the financial services segment to further concentrate on profitability in the wholesale lending space. Investors are also keenly interested in the financial services sector, in general.

Technically, the stock had given a rounding base pattern breakout at 2,770 on August 24th week and gave a sharp upside on August 31st week hitting record high levels at 3,307.95 on the last trading day of August. Hence, the recent correction coupled with rising volumes and 14-period RSI negative crossover in the overbought zone could be a pullback or a profit booking at peak levels. If the stock bounces back from here, it has a long way to go.