Will Kaynes Tech Shares Fall Further? Here's What Fundamental And Technical Experts Are Saying
The cautious views from these technical and fundamental analysts come at a time when Kaynes Tech shares are trading with cuts of up more than 5% on Monday's trading session.
Investors should avoid accruing long positions in Kaynes Tech, on account of recent issues around financial accounting and corporate governance, according to fundamental and technical analysts consulted by NDTV Profit.
"The company has had a serious issue regarding corporate governance. This raises questions about their numbers and projects. So until we are satisfied that adequate care is taken about their disclosure of numbers. One should stay away from the stock," said Lancelot D Cunha, CIO, ValueX Wealth Connect LLP.
D Cunha's view on Kaynes Tech came as a direct response to a query from Pooja on NDTV Profit's Ask Profit show.
Ajit Mishra, SVP of Research at Religare Broking, meanwhile, offered a technical view on Kaynes Tech, which has faced immense pressure in trade over the past month or so.
Mishra shared a cautious view on the counter as well, arguing that support levels do not usually work for stocks struggling due to news-driven events.
“In the event of news-driven events, support levels hardly work. Last time, when Kaynes was retracing from its record highs, the 3,800 mark was the zone where it took support and then rebounded smartly thereafter.
"The long-term average also coincides in that area. So maybe close to 3,750 - 3,800, it might attempt a respite," he said.
Mishra went on to advise investors to remain cautious and avoid building a long position. Those already having a long position can set a stop-loss at Rs 3,750 levels.
"But since uncertainty is still there, one should wait. Those who are sitting with a long position and wish to see how things unfold, 3,750 should be a strict stop-loss," he added.
The cautious views from these technical and fundamental analysts come at a time when Kaynes Tech shares are trading with cuts of up more than 5% on Monday's trading session.
In the last 30 days, the stock has fallen more than 36% as negative sentiment continues to creep in despite the management's latest response, earlier in the day.
