Shares of Delta Corp rallied over 17 per cent in morning trade on the BSE on Wednesday, June 19, after falling 3 per cent on profit booking a day earlier. Shares of Delta Corp opened higher by 17 per cent. as against previous close price of Rs. 136.05 per share It increased from 132.15 to 17.3 percent. 154.95. At around 11:15 am, the stock was trading with a gain of 15.6 per cent. Equity benchmark Sensex was down 0.05 per cent at 77,262 at the time.
Delta Corp shares have seen a surge this month. Looking at the current market price At Rs 152, the stock has gained over 30 per cent so far in June. The stock is back in the top spot after falling nearly 7 per cent in May and rising nearly 11 per cent in April.
However, looking at the broader one-year time period, the stock has declined over 39 per cent.
After strong underperformance, the stock is seeing some buying interest.
One reason for the recent surge in the stock price could also be the talk that Finance Minister Nirmala Sitharaman may announce a cut in GST in the upcoming budget, which will increase its profitability.
“There is a strong buzz in the market that Finance Minister Nirmala Sitharaman may announce a cut in GST in the upcoming Budget. This speculation has led the market to expect additional revenue in company balance sheets in the upcoming quarterly results,” Avinash Gorakshakar, head of research at Profitmart Securities, told Mint.
Gorakshakar said, “The stock is available at a significant discount due to the long-running selling pressure. Suppose the Union Finance Minister announces a reduction in GST in her budget speech in the third term of the Modi government. In that case, we can expect a surge in buying of Delta Corp shares after the budget presentation.”
What are the key levels to watch out for?
Experts say that the stock is trading above the key moving average, which is a bullish signal. However, the stock has resistance 155-160.
We spoke to five experts to find out what the technical indicators indicate about the stock and the key levels to watch out for. Here's what they said:
Jigar S. Patel, Senior Manager, Equity Research, Anand Rathi Shares & Stock Brokers
After reaching a peak near After peaking at 260 points on June 28, 2023, Delta Corp stock witnessed a massive correction, shedding around 154 points or nearly 60 per cent. However, in the last two weeks, it has shown resilience by stabilising and avoiding further declines.
“The stock has formed a bullish divergence on the weekly relative strength index (RSI) and has broken a bearish trend line, as seen in the chart. These technical indicators suggest a potentially favorable situation for traders. As a result, it is recommended for traders to consider buying Delta Corp shares.” 140-150. Expected upper target is 175, with a stop loss set “Based on the daily closing price, it is Rs 130,” Patel said.
Osho Krishna, Senior Research Analyst, Technicals & Derivatives, Angel One
Krishna observed that the stock was in a correction phase, but it has seen strong volumes in the last four days. With today's move, it has crossed the 200-day simple moving average (SMA).
Krishnan underlined that this has happened after a very long time. Today is the first time since last July that the stock has emerged from the 200-day SMA. On July 12, 2023, the stock fell below the 200-day SMA level. From a technical point of view, this is a very positive thing.
“At the higher levels, the resistance is somewhere around 160, which is a bearish divergence on the daily time frame. From here, one can expect an upside move Area around 155-160. But definitely there is strong resistance near it The reason for reaching 160 is due to two major things: the previous swing high and the subsequent gap on the daily timeframe chart,” said Krishna.
“Short-term traders can take long term positions but may wait for some correction as the risk-reward will not be favorable. Buy in this range for short term 140-145. For short-term traders, 160 is the immediate target. At lower levels, support has shifted towards this 130-135,” said Krishna.
Ruchit Jain, Head of Research, 5paisa.com
The stock has been going through a period of underperformance for a long time, but the price-volume activity has turned around recently as the stock has bounced off its lows. 105 with good quantity.
“It has also broken the moving average barriers 127 which will now be seen as support on any decline. Traders with existing positions can hold with a stop loss below for potential targets around 127 164 and “The figure is 173,” Jain said.
Deven Mehta, Equity Research Analyst at Choice Broking
Delta Corp shares are trading at close The stock exhibited a strong performance after a crucial breakout above the 150 level. With high trading volume at 140 levels. The stock is trading above its short-term (20-day), medium-term (50-day) and long-term (200-day) EMA levels, which indicates bullish momentum.
“on the downside, 140 is a strong support, which provides a safety net for the stock. On the upside, minor resistance is seen around 155 level. If the stock successfully crosses this resistance, it is ready to move further towards the next resistance level “It's 175 and above,” Mehta said.
“Investors holding the stock from lower levels should consider booking partial profits at current levels. Additionally, one should maintain trailing stop loss “Talking at 140 is a prudent move to avoid potential downside while also keeping room for further gains. This balanced approach ensures profit taking while keeping the potential for additional gains intact,” Mehta said.
Milan Vaishnav, CMT, MSTA, Founder and Technical Analyst at Gemstone Equity Research and Chartwizard FZE
Delta Corp appears to be reversing its downtrend and is in the process of confirming the trend reversal. The recent move has seen the stock cross all major moving averages.
“Investors who are waiting to invest in this stock can do so at current levels even if the stock witnesses some corrective pullback. Those who have already invested in this stock at higher levels can continue to stay invested as the possibility of a move higher cannot be ruled out,” Vaishnav said.
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Disclaimer: The views and recommendations expressed above are those of individual analysts, experts and brokerage firms and not of Mint. We advise investors to seek advice from certified experts before making any investment decisions.
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