Supertrend indicator as well trend-following momentum indicator, Moving average convergence divergence (MACD) has given a sell signal on charts
Infibeam Avenues plunged over 70 percent on Friday, continuing its decline for the fourth consecutive session, along with a rise in volumes. The company is set to have its annual general meeting (AGM) over the weekend.
The decline managed to wipe over Rs 9,200 crore of its investors' wealth.
On the technical charts, Infibeam is trading below its short-term moving averages such as 5-days exponential moving averages (EMA), 13-EMA, 20-EMA, and 100-EMA. But, on Friday, it breached the crucial 200-DMA placed at Rs 167 which suggests that the trend might have turned bearish for the stock.
Supertrend indicator as well as trend-following momentum indicator, Moving Average Convergence Divergence (MACD), has given a sell signal on charts.
Infibeam saw 158% rise in volumes 1,68,02,604 on BSE.
Reacting to the steep fall in stock price, the management of the company in a stock exchange filing clarified "all the material information, that have a bearing on the operation/performance of the Company which includes all price sensitive information under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), have always been disclosed by the company within the stipulated time".
“Further, the Company has always provided timely clarification/information sought by the Stock Exchanges. There is no pending information or announcement from the company which may have a bearing on the price behaviour in the scrip,” it said.
Infibeam is a leading online retailer in India and is also the world’s fastest growing e-commerce Technology Company. Infibeam offers cloud-based ecommerce platform service in B2C and B2B verticals and is recognised globally for its innovative approach towards delivering business values and responsive to changing customer needs.
“As such, we do not track Infibeam, but at its current valuations, it appears expensive. Investors could look to stay away from such kind of names,” AK Prabhakar, Head of Research at IDBI Capital told Moneycontrol.
The company also saw short build-up for October series. According to a report at IIFL, rollover stood at 76 percent while the price fell by over 12 percent in the September series.
An increase in open interest along with a decrease in price mostly indicates short positions being built up, except for very strong stocks where some traders may buy the stock on declines.
The story was updated to include development in the stock price.For more Markets news, click here
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