Delta Corp shares dive 25% in a month; here's what tech charts indicate

Shares of Delta Corp Ltd on Thursday continued to fall for the third straight session. The stock today settled 4.69 per cent lower at Rs 187.85 over its previous close of Rs 197.10. The counter has slumped 24.69 per cent in the past one month. The fresh round of weakness came after Union Finance Minister Nirmala Sitharaman, post the 51st GST Council meeting, said a Goods and Services Tax (GST) of 28 per cent on online gaming, casinos and horse racing may be implemented from October 1 this year. Although, she mentioned that the highest tax bracket for casinos and online gaming would be reviewed after six months of implementation.

During the Q1 FY24 earnings conference call, Delta Corp Managing Director Ashish Kapadia said, "We can't speculate at all at this moment. I think let the fine print (GST) come out, everyone is just over speculating. Having said that whatever the rule that may come about is fine. I think the industry will find a proper manner in which to solve this problem. So, I think let's wait and watch."

On technical set up, analysts largely suggested that the stock looked 'bearish'.

AR Ramachandran from Tips2trades said, "Delta Corp stock price is bearish on the daily charts with strong support now at Rs 179. Till daily resistance of Rs 203 is not broken on a closing basis, investors should avoid buying."

Kush Ghodasara, CMT, said, "The stock has nudged out of a flag pattern at Rs 192 today. Coincidentally, Rs 192 was a support for moving averages too. Indicators are suggesting a weak momentum in the coming weeks. So, we can short the stock with a stop loss placed at Rs 192 for downside target of up to Rs 165."

On the technical setup, the stock traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 34.02. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 22.78 against a price-to-book (P/B) value of 2.43.

The scrip has a one-year beta of 1.19, indicating high volatility.

Delta Corp is engaged in the operation of casinos. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.

Meanwhile, Indian equity benchmarks extended their fall for the third straight session, tracking weakness in the global bourses. The 30-share BSE Sensex pack tanked 542 points or 0.82 per cent to close at 65,241, while the broader NSE Nifty index moved 145 points or 0.74 per cent down to end the session at 19,382.