Premier Energies share price continued its correction on Monday, going down by 4 percent to trade at Rs 1,064 at the time of writing. The stock has been on a sharp decline since Tuesday last week, with its losses in the last five trading sessions at 14.1 percent. That said, the current share price is still 136 percent above its IPO price of Rs 450. That means many investors are still in profit, considering that it only listed at the NSE about two weeks ago.
In addition to the sharp gains in the last two weeks, the company also has a healthy order book. That signals the potential for further upside and reduces pressure to sell the stock. In the latest development, Premier Energies (NSE: PREMIERENE) won a Rs 2.15 billion contract from the Uttah Pradesh Department of Agriculture. The contract will involve the supply, installation and commissioning of 8,085 solar cells across the region.
On the flip side, the exceptional performance in recent days also means that the buying momentum will likely be slower. On the other hand, the incentive to sell could strengthen if the correction extends.
The positive sentiment around Premier Energies is also propelled by a strong institutional presence in its ownership composition. Morgan Stanley, Abu Dhabi Investment Authority, BNP Paribas and Blackrock are among the giant names with a piece of ownership in the company. Premier Energies was founded in 1995 and specialises in the manufacture of solar energy equipment such as solar cells, monofacial modules, as well as solar energy engineering, procurement and construction.
The momentum on the hourly chart signals control by the sellers below the pivot mark at 1,063. That will likely lead to the establishment of the first support at 1,050, but the action could go lower if the sellers extend their control and breach that support. In that case, the next support could come at 1,040. On the other hand, a move above 1,063 will favour the upside, with the first resistance likely to be at 1,081.10. However, extended control by the buyers could breach that level and test 1,093.
This post was last modified on Sep 16, 2024, 10:50 BST 10:50