Comments
Dilip Buildcon Ltd plunged further on Thursday, down as much as 17.2 per cent to Rs 760.10, its lowest since October 17, 2017. The stock fell 12.9 per cent on Wednesday, even as the company dismissed rumours about resignation of its auditor.
There are unconfirmed rumours in the market relating to the resignation of its statutory auditors of the company. But the company in its clarification note to exchanges had on Wednesday said that there was no truth in the matter and the rumours are baseless.
The stock posted biggest intraday percentage fall since March 9, 2017; it was on track to fall for a third session.
Technical indicators suggest that the stock may fall further. The stock's 20-day exponential moving average (EMA) has cut below its 50-day EMA, a bearish sign.
An analysis of the wave pattern suggests the stock has completed a five-wave uptrend and wave A of the corrective cycle has started. The stock has broken below its 200-day EMA, the average supported the stock on Wednesday.
The stock has also broken below a support at Rs 838, the 38.2 pct Fibonacci retracement level of the entire uptrend from November 9, 2016 low to May 15, 2018 high.
The stock has a support at Rs 769.95 from the low of February 6, 2018, a break below which could lead to a fall towards Rs 712.7, the 50 per cent retracement level. The stock has declined 7.2 per cent this year, though it's still up 107.4 per cent in the past one year as of Wednesday's close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.