Delta Corp stock up 14% on retrospective GST respite hope. Check key levels

Posted by Admin June 19, 2024 Bussiness

3 min read Last Updated : Jun 19 2024 | 11:18 AM IST

Shares of online gaming companies, Delta Corp in particular, were in limelight in Wednesday’s intra-day trade on hopes of reprieve from on retrospective taxes.

According to a Business Standard report, the Goods and Services Tax (GST) Council, at its meeting on Saturday, is expected to take up a key amendment that has the potential to resolve the vexatious issue of retrospective taxation for online gaming companies.

According to officials familiar with the development, this amendment to the central GST (CGST) Act, if implemented, will give both the Centre and states the power to waive GST dues that have not been paid due to legal ambiguity or on account of “general practices” consistently followed by businesses.

The proposed amendment, if implemented, may provide relief to online gaming companies facing Rs 1.12 trillion in tax demands through over 70 notices. READ MORE

Delta Corp zoomed to a high of Rs 151.25 – up 14.5 per cent from its previous close. At 10:40 AM, the stock was trading with a gain of 12.8 per cent on the back of over two-fold jump in trading volumes. The counter has seen trades of around 10.11 lakh equity shares on the BSE as against the two-week average volume of around 4.63 lakh shares.

On 04 June 2024, Delta Corp had hit its 52-week low of Rs 104.30. With today’s gain the stock is up 45 per cent from its 52-week low.

As per reports, Delta Corp has faced multiple GST notices between September and October 2023, with tax demand up to $1.34 billion including interest and penalty. READ MORE

Meanwhile, shares of Nazara Technologies, another player from the online gaming industry, jumped 3.87 per cent to hit a high of Rs 905. Nazara Technologies stock, thereafter, pared gains and was up 0.5 per cent at Rs 876. The counter has seen volumes of around 46,000 shares as against the two-week average volume of around 90,000 shares on the BSE.

Delta Corp

Current Price: Rs 151

Upside Potential: 22.5%

Support: Rs 138; Rs 135

Resistance: Rs 167; Rs 175

Delta Corp stock for the first time after July 2023 has broken above its 200-DMA (Daily Moving Average) – a key indicator that helps in determining a bullish and bearish trend. In general, stocks trading above the 200-DMA, which is a long-term moving average, are considered bullish and vice versa.

Having said that, in case, of Delta Corp the stock has just crossed its 200-DMA. Further, the stock is also trading above its other key moving averages such as – 20-, 50- and 100-DMA, which is another positive sign.

The only worry seems – the shorter-term moving averages are at present below long-term moving averages. Meaning, the 20-, 50- and 100-DMA at Rs 120.80, Rs 121.30 and Rs 127.80 are below the 200-DMA, which stands at Rs 138. The 20-DMA is on the verge of crossing the 50-DMA; as and when this happens it shall further bloster the bull case scenario. CLICK HERE FOR THE CHART

The weekly chart suggests, that the stock can rally to Rs 175 or test its 200-WMA on the higher side, which indicates a target of Rs 185. Interim resistance for the stock can be expected around Rs 167.

In case of a downturn, the stock is expected to seek support around its 200-DMA, followed by Rs 135.

First Published: Jun 19 2024 | 10:51 AM IST