Brightcom Group Ltd shares on Friday extended their sharp fall for the third straight session. The stock plunged 5 per cent to settle at its fresh one-year low of Rs 11.08. At this price, it cracked has 14.18 per cent in three trading days and 25.59 per cent in a month. The counter has turned negative following NSE's notice on "potential suspension of trading."
The company, yesterday, issued a clarification in response to the NSE notice. "The NSE notice indicates that the suspension of trading is contingent upon the company's failure to declare its quarterly results for the second (Q2) and third (Q3) quarters by June 11, 2024. We want to assure you that Brightcom is fully committed to meeting all regulatory requirements and deadlines set by the exchanges," it stated.
"Our team is diligently working to finalise and release the quarterly results within the stipulated timelines. We are confident that by adhering to these deadlines, we will avoid any suspension of trading and continue to operate smoothly on both the NSE and the BSE," it further said.
On Brightcom's part, there have been delays in terms of financial reporting, annual general meeting (AGM) scheduling and C-suite level appointments. It was also under Securities and Exchange Board of India's (Sebi's) watch over preferential issue of shares and warrants.
Technical analysts largely suggested that the stock looked weak on charts and may slip further. Support could be seen at Rs 10.8, followed by Rs 9.35 level.
"BCG shares are not looking good on charts. One should consider exiting the counter as it can slip towards Rs 7 level," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"Brightcom Group stock price is bearish but also oversold on daily charts with strong resistance at Rs 13. A daily close below support of Rs 10.8 could lead it to a lower level of Rs 8.6 in the near term," said AR Ramachandran from Tips2trades.
"Support will be at Rs 9.35 and resistance at Rs 13.70. A decisive close above Rs 13.70 level may trigger a further upside till Rs 15. The expected trading range will be between Rs 9 and Rs 15 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
As per Brightcom's last declaration on shareholding for the quarter ended December 2023, promoters held a 18.38 per cent stake in it.