Everonn up on new biz

Everonn Systems India spurted 63.8 per cent last week after the company announced that it has secured a contract from Ramaiah Medical College and Teaching Hospital, Bangalore for installing a studio to facilitate the process of e-learning and for networking to continue medical education (CME).

The stock was up by 45 per cent on the day of announcement (March 16) and moved up further by 37 per cent the next day. Trading volume spurted from a daily average of 20,000 shares in the previous week to 200,000 shares during the week ended March 20 on speculative buying and fresh long build-up on the futures & options segment.

 

The upmove was halted on the third day (March 18) when the stock reacted from the day’s high of Rs 169.60 to close at Rs 156.15. The stock fell further on March 19 and, again on March 20, to close at Rs 139.69 on lack of delivery-based buying in cash segment and profit-booking in F&O segment. The open interest in March futures declined from 201,600 shares on March 16 to 155,200 shares on March 20.

The stock is likely to decline further on Monday, as is evident from the trading activities in F&O and cash segments. The trading volume in F&O segment declined sharply from 4.04 million shares to 0.92 million shares. In cash segment delivery, volumes remain lukewarm at around 3 per cent of the total trade. The small-cap stock had underperformed the market, declining 68 per cent till March 13 from Rs 244 on January 6, 2009 due to slower topline growth in third quarter.