Coforge shares tank 14% in 5 days; here’s why
A lot of weakness was seen in Coforge; in fact, it was down 5 percent yesterday, March 15. It was down 14 percent in the last five days following that big spike in volumes that was seen, of course, partly owing to the big block deal and it also closed at an 8-month low yesterday.
Shares of Coforge gained nearly 5 percent on Wednesday. The stock is trading lower than its 5, 20, 50, 100 and 200 day moving averages. At 1219 IST, Coforge stock was up 4.4 percent at Rs 4,331.55 on BSE.
A lot of weakness was seen in Coforge; in fact, it was down 5 percent yesterday, March 15. It has tanked 14 percent in the last five days following the big spike in volumes that was seen, of course, partly owing to the big block deal and it also closed at an 8-month low yesterday.
In terms of volumes, if the block deal is removed, it has seen a surge, but considering that it's around 2.4 times as compared to one month average and once again, the 5-day average, in terms of deliverables, is also at around 2.65 times.
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The key resistance is at Rs 4,410 and the 2-day high and the 20 daily moving average (DMA) is at about Rs 4,500. So these are the two levels to watch out for.
However, there has been a risk-off sentiment of late in the markets because of which the technology sector has taken a hit. There are, of course, geopolitical tensions, as well as rising COVID-19 cases, which is also impacting the technology sector across the globe and Coforge, unfortunately, is one that is also falling in line.
Talking about the stock, Deven Choksey of KRChoksey said, “Anyone who would like to monetise and take the gain out of it, this is a better time. However, at the same time, one must understand that to scale up these businesses, there are a significant amount of challenges going forward, including in the area of attrition, winning large scale customers. And with an ever-changing and evolving technology sector, most companies are basically finding it challenging. So I am not completely surprised if someone is monetising and probably seeing the better times going forward for the company when it probably lands into the fold of some of the larger companies at some point of time."
First Published: Mar 16, 2022 12:30 PM IST
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