Delta Corp shares approach 52-week low; more correction likely?

Shares of Delta Corp Ltd approached their 52-week low in the last session. The stock of the gaming and casino firm hit its yearly low of Rs 124.60 on October 16. Delta Corp stock closed 5.38% lower at Rs 127.45 on Thursday. Total 2.96 lakh shares of the firm changed hands amounting to a turnover of Rs 3.84 crore in the previous session.

The stock has lost 42.59% in one year and fallen 41% per cent since the beginning of this year. Delta Corp stock has a one-year beta of 1.3, indicating very high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 29.9, signaling it's trading in the oversold zone. Delta Corp shares are trading lower than the 5 day and 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

Total 2.96 lakh shares of the firm changed hands amounting to a turnover of Rs 3.84 crore in the previous session.

The technical indicators signal that the stock is trading in bear zone. Here’s a look at what analysts said on the outlook of the stock.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “The stock has plunged drastically in recent times breaching below the Rs 175 zone which was the major support, with currently hovering with a very bearish view it has a long way to move further ahead to improve the bias and expect for further rise. The first zone would be to cross Rs 150 levels to improve the bias to some extent and further, filling up the gap of Rs 173 zone shall establish some conviction for further improvement. The Rs 120 zone from current levels would be crucial support below which matter can turn much worse.”

Abhijeet from Tips2trades said, "Delta Corp has been very bearish on the Daily charts with strong resistance at Rs 136. Investors should buy only if Daily close is above this resistance for target of 158. Next strong support will be at Rs 121."

The stock hit a 52-week low on October 16 after the gaming and casino firm said its subsidiary Deltatech Gaming has been notified of a substantial tax liability amounting to Rs 6,384 crore on October 14.

With the latest tax notification, Delta Corp's and its subsidiaries had received notices for payment of tax shortfall to the tune of Rs 23,206 crore for the period between July 2017 and March 2022.

However, on October 24, the Goa Bench of Bombay HC restrained tax authorities from passing any final order on the Rs 16,195-crore GST notice issued to the casino firm.

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.

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