Waaree Energies shares dived 9% today. Here's what happened

Waaree Energies Ltd shares logged a sharp cut on Wednesday, sliding 9.36 per cent to close at Rs 2,422.75. At this price, the stock has corrected 35.23 per cent from its all-time high value of Rs 3,740.75, seen on November 6 last year. With that being said, the recently-listed scrip is still up 61.19 per cent compared to its issue price of Rs 1,503.

The stock plunged today due to profit booking across the broader market (mid- and small-cap shares) despite an overall rebound in domestic benchmarks.

"There was a broad-based profit booking across all small- and mid-cap stocks. And Waaree Energies was no exception today," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "Investors with a high-risk appetite can hold it with a long-term view but with a strict stop loss. The company's business model is more futuristic and should be looked at from a long-term perspective only," he added.

On technical setup, support on the counter could be found in the Rs 2,400-2,300 range. "Waaree Energies has fallen sharply and is approaching its lifetime low. A decline below Rs 2,500 mark has negatively impacted the technical structure, suggesting a potential continuation of the downward trend. Rs 2,300 appears to be the last support level and a further decline could disrupt the outlook in the near term," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be Rs 2,400 and resistance at Rs 2,575. A decisive move above Rs 2,575 level may trigger a further upside towards Rs 2,675. The expected trading range will be between Rs 2,350 and Rs 2,675 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The scrip saw high trading volume on BSE today as around 2.69 lakh shares changed hands. The figure was higher than the two-week average volume of 1.04 lakh shares. Turnover on the counter came at Rs 66.13 crore, commanding a market capitalisation (m-cap) of Rs 69,601.54 crore.

Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 13.3 GW.

Meanwhile, the 30-share BSE Sensex pack climbed 567 points or 0.75 per cent to settle at 76,405 and the broader NSE Nifty index moved up 131 points or 0.57 per cent to close at 23,155. However, broader indices (mid- and small-cap shares) felt the pain, with the Nifty Midcap 100 slipping 1.34 per cent and Nifty Smallcap 100 down 1.63 per cent.