Shares in Industrial Finance Corporation of India (IFCI) crashed Friday after government exercised its option to convert Rs 923 crore worth of debentures into equity with immediate effect.
The counter saw huge volumes, with nearly 20 million shares trading hands, against 1 million shares traded yesterday. At 2.55 p.m., IFCI was down 17 per cent at Rs 29.15.
Here is technical analyst Sarvendra Srivastava's view on the stock.
Hold the stock for the next fortnight with a stop loss at 29. Considering the plunge in price (with strong volumes), the damage control will take a long time.
The stock has strong support at 29-30, but a break below 29 can take the stock to 23-24 levels.
If 29-30 is held and the stock is range bound between 29-32, a review is possible in the next two weeks.
Disclaimer: Investors are advised to make their own assessment before acting on the information.
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