IEX shares see a sharp fall today. Should you accumulate?

“There is a sharp correction in the stocks which were top performers in last few days. The fundamentals are still strong of IEX but there is valuation concern after a steep run and there was a clear speculative move as it was easy to make money for the traders every day so we are seeing a technical correction to take out weak hands,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena further advised that the 9-DMA of 770 may provide some support however there is a risk for a move towards 20-DMA that is currently placed at the 687 mark. The 700-650 is a good area to accumulate stock for the long term.

IEX is the premier electricity exchange in India, which facilitates electricity trade. IEX commands a market share of around 95% in the power exchange market.

Unveiling important levels in regard to IEX shares, Sumeet Bagadia, Executive Director at Choice Broking said, “The stock has strong support at ₹770 per share levels but there can be fresh weakness in the counter if it breaks this ₹770 support. One should avoid fresh buying in the counter and those who hold IEX stocks are advised to maintain strict stop loss below ₹770 as breaking of this levels would mean fresh breakdown on charts.”

IEX’s plan to issue bonus shares, which will be considered at an October 21 board meeting along with its quarterly earnings. 

A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make if affordable for investors. Bonus shares are fully paid additional shares issued by a company to its pre-existing shareholder.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.