Shares of Reliance Infrastructure Ltd continued their sharp downward move in Friday's trade. The stock dived 20 per cent to hit a lower price band of Rs 181.95. At this price, it has cracked 35.98 per cent in just two trading days.
The counter has been reeling under pressure after the Supreme Court of India has overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of around Rs 8,000 crore to Reliance Infra's subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
Reliance Infra has issued a clarification to BSE and mentioned that the said order "does not impose any liability on the company." "We inform you that the Hon'ble Supreme Court has allowed the Curative Petition filed by DMRC against DAMEPL. Reliance Infra wishes to clarify that the order dated April 10, 2024 passed by the SC does not impose any liability on the company and the company has not received any money from DMRC/DAMEPL under the arbitral award," it stated.
Bourses BSE and NSE have put the securities of Reliance Infra under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Technical analysts largely suggested that the stock looked weak on daily chart. Support could be seen at Rs 190, followed by Rs 187 and Rs 182 levels.
"The stock has seen a sharp correction in the last two trading sessions. Reliance Infra has eroded its gains recorded in the last four months. For now, any decisive breach below the Rs 190-odd zone is likely to disrupt the intermediate trend. On the higher end, the bearish gap of Rs 210-230 may act as a daunting task for the buyers. It is advisable to maintain extreme caution after the recent setup," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Reliance Infra looked bearish on daily charts with strong resistance at Rs 228. A daily close below support of Rs 187 could lead it to a lower level of Rs 161 in the near term," said AR Ramachandran from Tips2trades.
"Support will be at Rs 182 and resistance at Rs 214. A decisive close above Rs 214 level may trigger a further upside till Rs 228. The expected trading range will be between Rs 180 and Rs 230 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
Reliance Infra shares were last seen trading 11.87 per cent lower at Rs 200.40. The company is a part of Reliance Anil Dhirubhai Ambani Group.