Shares of logistics firm Delhivery continued to fall for the sixth consecutive session on Wednesday and hit its record low. The stock fell 5.32 per cent to its all-time low of Rs 317. Technical analysts said the momentum is weak and the stock could decline further in the coming days. However, on a closing basis, break of Rs 340 level could result in a short term bounce.
A total of 59 lakh shares were traded on BSE today, with a total turnover of Rs 1.92 crore. The market capitalization (m-cap) of the company stood at Rs 23,671.00 crore.
The stock has declined 13.02 per cent in last six sessions. Delhivery has declined by 39.52 per cent on year-on-year (YTD) basis.
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Taking into account today’s closing, Delhivery’s stock has declined by 33.13 per cent from its initial public issue (IPO) price of Rs 487.
Technical view on Delhivari
Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities said, “The stock has lost nearly 45 per cent so far this quarter. The stock faced selling pressure at sustained higher levels. Lower on the intraday chart Top formation and correction continuation formation. Current levels on the daily chart indicate further weakness. We are of the view that the stock’s short-term formation is bearish but oversold. For now, till the stock closes above Rs 365 or the 20-day SMA (Simple ) moving average), the weak wave is likely to continue and below this, it could slip further towards Rs 300-280 levels. On the other hand, a quick pullback rally is possible if it trades above Rs 340. succeeds in doing, and above that, it can go up to Rs 350-360.”
AR Ramachandran of Tips2trades said, “Anchor investors are exiting the stock despite good Q2FY2023 results. Delhivery share price has seen a continuous sharp decline due to forecasts of lower economic growth in the coming year.” Even though Delhivery stock price is technically overbought, investors should wait for a daily close above 339 to buy for a target between Rs 380 and Rs 405 in the near term. The next lower support is at Rs 297. Will happen.
Lower economic growth projections could reduce demand, which could hit the logistics sector hard. Some global rating agencies have downgraded India’s economic growth projections for the current financial year.
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Delhivery narrowed its losses to Rs 254 crore in the second quarter of the current financial year, as against a loss of Rs 635 crore in the year-ago period.
Revenue for the second quarter stood at Rs 1,796 crore, a growth of 22 per cent as compared to Rs 1,497.7 crore in the corresponding quarter of the previous fiscal.
Meanwhile, Indian equity benchmarks closed on a higher note today led by gains in state-owned lenders.
