There is a sharp decline in the shares of IEX today. Should you submit?

“There has been a sharp correction in the top performing stocks in the last few days. Fundamentals of IEX are still strong but valuation concerns after a brisk run and there was a clear speculative move as it was easier for every day traders to make money so we are seeing a technical correction to take out the weak hands. Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena further advises that the 9-DMA of 770 may provide some support, however, there is a risk of a move towards the 20-DMA which is currently at the 687 mark. 700-650 is a good zone to hold the stock for long term.

IEX is the leading electricity exchange in India, which facilitates electricity trading. IEX has about 95% market share in the power exchange market.

Unveiling the significant levels with respect to IEX shares, Sumeet Bagadiya, Executive Director, Choice Broking said, “The stock has strong support ₹770 per share level but if it breaks then there could be fresh weakness in the counter ₹770 support. Fresh buy over the counter should be avoided and IEX stock holders are advised to maintain a strict stop loss below ₹770 Breaking this level would mean a fresh breakdown on the chart.”

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

A company issues bonus shares to its shareholders with the aim of increasing the liquidity of the stock as well as reducing the price of its stock to make it affordable to investors. Bonus shares are fully paid-up additional shares issued by a company to its pre-existing shareholder.

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