Delta Corp shares close 23% lower; more correction likely?
Delta Corp shares closed 23.28% or Rs 57.45 lower at Rs 189.35 against the previous close of Rs 246.80 on BSE. Market cap of Delta Corp fell to Rs 5070 crore in the current session.
- Jul 12, 2023,
- Updated Jul 12, 2023 3:59 PM IST
Shares of gaming and casino firm Delta Corp Ltd ended 23% lower today after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos. Delta Corp stock closed 23.28% or Rs 57.45 lower at Rs 189.35 against the previous close of Rs 246.80 on BSE. Market cap of Delta Corp fell to Rs 5070 crore in the current session.
Total 33.54 lakh shares of the firm changed hands amounting to a turnover of Rs 64.03 crore. Earlier, the stock opened lower at Rs 222.15 on BSE. However, the stock is still up 5.49 per cent in one year but lost 12.07 per cent since the beginning of this year.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 53.1, signaling it's trading neither in oversold nor in the overbought zone. Delta Corp stock has a one-year beta of 1, indicating average volatility during the period.
Shares of Delta Corp fell 27.79% intraday to Rs 178.20 in the afternoon session today.
Currently, online gaming platforms pay 18 percent GST on the platform fees. The charge is also known as Gross Gaming Revenue (GGR) and not on the full value of the transaction, also known as Contest Entry Amount (CEA).This is the fees charged by online gaming portals.
Here’s a look at what at what analysts said on the outlook of Delta Corp stock.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock has plunged drastically in a single day on the back of negative news and technically has indicated a big bearish candle to weaken the trend breaching below the 50EMA and also the 200 period MA. The major support would be visible near 173 zone and for the bias to improve overall it needs to recover above the significant 200 period moving average level of Rs 214 to establish some stability and conviction.”
Santosh Meena, Head of Research, Swastika Investmart said, “Delta Corp. has experienced a significant decline, reaching the crucial support level of Rs 175, which is considered critical due to its historical significance in March. It is important to note that a close below this level could potentially result in further weakness, potentially pushing the stock toward the Rs 140 level. On the upside, the 200-day moving average (DMA) at Rs 215 represents an immediate and critical resistance, followed by a major hurdle at Rs 240. Breaking through these levels would require considerable strength and could signal a shift in momentum. However, if Delta Corp. manages to hold above the Rs 175 support level, there is a possibility of a consolidation phase within the range of Rs 200 to Rs 240. This means that the stock may trade within this range without any significant directional bias.”
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.
Also read: TCS, HCL Tech shares fall ahead of Q1 results. What analysts say
Shares of gaming and casino firm Delta Corp Ltd ended 23% lower today after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos. Delta Corp stock closed 23.28% or Rs 57.45 lower at Rs 189.35 against the previous close of Rs 246.80 on BSE. Market cap of Delta Corp fell to Rs 5070 crore in the current session.
Total 33.54 lakh shares of the firm changed hands amounting to a turnover of Rs 64.03 crore. Earlier, the stock opened lower at Rs 222.15 on BSE. However, the stock is still up 5.49 per cent in one year but lost 12.07 per cent since the beginning of this year.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 53.1, signaling it's trading neither in oversold nor in the overbought zone. Delta Corp stock has a one-year beta of 1, indicating average volatility during the period.
Shares of Delta Corp fell 27.79% intraday to Rs 178.20 in the afternoon session today.
Currently, online gaming platforms pay 18 percent GST on the platform fees. The charge is also known as Gross Gaming Revenue (GGR) and not on the full value of the transaction, also known as Contest Entry Amount (CEA).This is the fees charged by online gaming portals.
Here’s a look at what at what analysts said on the outlook of Delta Corp stock.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock has plunged drastically in a single day on the back of negative news and technically has indicated a big bearish candle to weaken the trend breaching below the 50EMA and also the 200 period MA. The major support would be visible near 173 zone and for the bias to improve overall it needs to recover above the significant 200 period moving average level of Rs 214 to establish some stability and conviction.”
Santosh Meena, Head of Research, Swastika Investmart said, “Delta Corp. has experienced a significant decline, reaching the crucial support level of Rs 175, which is considered critical due to its historical significance in March. It is important to note that a close below this level could potentially result in further weakness, potentially pushing the stock toward the Rs 140 level. On the upside, the 200-day moving average (DMA) at Rs 215 represents an immediate and critical resistance, followed by a major hurdle at Rs 240. Breaking through these levels would require considerable strength and could signal a shift in momentum. However, if Delta Corp. manages to hold above the Rs 175 support level, there is a possibility of a consolidation phase within the range of Rs 200 to Rs 240. This means that the stock may trade within this range without any significant directional bias.”
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.
Also read: TCS, HCL Tech shares fall ahead of Q1 results. What analysts say