INSUBCONTINENT EXCLUSIVE:
Ramesh Damani-backed stock Protean eGov Technologies has plunged nearly 50% from its 52-week high to a fresh low, with the decline occurring
over a relatively short span
stage.On Monday, the stock hit a 52-week low of Rs 785 on the NSE, just five months after touching a high of Rs 1,535 on February 6 this
year.Although the stock has posted gains of over 3% on a closing basis over the past two trading sessions, the rally is not strong enough to
suggest a recovery.Market expert Drumil Vithlani believes Protean eGov Technologies continues to exhibit a weak structure, consistently
forming lower highs and lower lows on the hourly chart
"In the previous sessions, the stock marked a fresh low near Rs 785, from which a technical bounce was observed
However, despite this rebound, the broader outlook remains negative as long as the stock stays below its 20 EMA," said the Technical
Research Analyst at Bonanza."The RSI had slipped into oversold territory, which justified the short-term recovery seen today (Wednesday)
Going forward, Rs 785 remains a key level to watch
A breakdown below this support could accelerate the decline toward Rs 760 and Rs 750, respectively," he warned, while recommending that
traders remain cautious and avoid fresh long positions until a sustained move above short-term averages is confirmed.
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short covering, given that the stock is in an oversold zone
"One can wait for some time before adding a position
Only if it trades and closes above Rs 900 levels can it trigger fresh buying
Strong support is seen at the Rs 780 level," the analyst said.Protean is an Indian technology company headquartered in Mumbai
It focuses on developing digital public infrastructure and e-governance initiatives for various governmental bodies in India.The company
reported a consolidated net profit of Rs 20 crore in the quarter ended March 31, marking a 6% year-on-year growth
Meanwhile, the topline stood at Rs 239 crore, reflecting a 1.5% increase over the corresponding quarter of the previous financial year.Also
read: Ashish Kacholia-backed Balu Forge stalls after 720% IPO rally
Time to re-enter?Protean eGov Technologies stock received analysts downgrades after the company failed to get the government's PAN 2.0
project.Gupta called this a major setback for the company, attributing this factor to the sharp decline in the stock price.Following the
development, Anand Rathi in May had released a note saying that PAN 2.0 rollout was unlikely to disrupt existing issuance in the near term
It had then recommended a 'Buy' rating on the stock for a price target of Rs 1,455
The share was then trading around Rs 1,004 and has witnessed a decline.(Disclaimer: Recommendations, suggestions, views and opinions given
by the experts are their own
These do not represent the views of the Economic Times)
