Siemens Ltd. is engaged in electrical equipments business we can also call it as capital goods segment. Siemens Ltd is one of the oldest listed company in India, it was listed on NSE on 6 September 1995. Stock market performance has been nice for the company as we have seen its stock trading from 35 level in 2003 to 1140 levels in 2008. Similar performance was seen in BHEL stock as they belong to same sector. This kind of strong movement was seen during the bull run, so for now we still see siemens stock is very attractive at current levels. Since the stock is in uptrend we must watch for only buying signals in this stock till this uptrend is valid. Charts suggests us we may see further appreciation in siemens stock, right now the price action is near 15 EMA level we may see siemens stock taking support near those levels. When we see daily charts of SIEMENS we see that the stock is advancing and volume is declining, this is something that investors must watch for as the price is more likely to correct from the current levels. Taking a look at technical indicators we see that most of the indicators are in overbought zone hence a down fall is more likely in siemens stock. So our advice for traders is to long siemens near 880 level for targets as 939 and then 977 levels, we also recommend a protective stop loss to be placed just below 855 level only on closing basis. For investors our advice is to hold the stock at current levels, as there will be plenty of opportunity in this stock to average at better price. Immediate support for this stock now lies at 777 level. Below that level we will change our view to bearish for siemens. MACD, Slow stochastic and RSI is already showing some negative sign, so we advice investors to exit this stock now.
Fundamentals of Siemens:
Fundamentally the stock is expensive at the current point of time, we have seen stock moving higher but from valuations point of view we should not buy this stock at this time. The company has no Debt in its balance sheet, hence strong balance sheet.