- EDUCOMP has multiple support near Rs.680-690 but the stock has clearly failed to participate in the recent rally for the last 4-5 sessions.
- The improving outlook for the IT sector has seen the CNX IT index soar while EDUCOMP has distinctly under-performed, in spite of a 1:5 stock-split and good revenue growth of 92% this quarter.
- If the stock sustains below Rs.690 it would be a major breakdown and a further decline of 15-20% may be seen where the stock may grossly underperform the broader indices. Next support around Rs 540-560 may be tested.
- The stock shows a huge bearish Head & Shoulders formation where breakdown happens below Rs 690. It will be a fatal breakdown once that happens as the stock would move below all major moving averages.
Tuesday, November 17, 2009
EDUCOMP CMP Rs 780 - The stock looks bearish