Bears grip Delta Corp on highest ever volume, Nazara must hold 200-DMA

Delta Corp needs to cross the 200-DMA to regain the momentum, while Nazara Technologies must hold the 200-DMA as a support.

The recent assessment of the 50th Goods and Service Tax (GST) council to enforce a 28 per cent GST on online gaming has severely dented the related listed stocks. On Wednesday, Delta Corp opened in a 10 per cent lower circuit and went further down during the intraday session. The stock also trades in Future and Options of Derivative segment.

Another listed player, Nazara Technologies opened 13 per cent lower, but quicjly managed to recoup some losses. The stock was last seen trading 4 per cent lower.

Here’s the technical outlook of these listed players to gauge the next move:-

Delta Corp Ltd (DELTACORP)

Outlook: Breach of 200-DMA suggests decline to Rs 130

Shares of Delta Corp slipped over 22 per cent on highest-ever volume of over 5 crore on NSE, implying the build-up of a resilient bearish sentiment. Not only has the stock broken the 200-day moving average (DMA), but it is on the course to hit new 52-week low. 

The sentiment towards the stock has taken a toll, and until the 200-DMA set at Rs 210 is not recouped, the trend is likely to see further deterioration. Weakness may see the stock declining towards Rs 130 levels.  CLICK HERE FOR THE CHART

Nazara Technologies Ltd (NAZARA)

Outlook: 200-DMA holds the key neckline

While the shares of Nazara Technologies broke out of the “Golden Cross”, emerged on the daily chart, the today’s decline has somewhat dented the upward bias. However, until the support of 200-DMA placed at Rs 602 is guarded, the trend could recoup the losing momentum. 

The major breakout stays at Rs 740, which is acting as a barrier. When this hurdle is taken out, the positive breakout shall see Rs 800-levels. Until then, the stock needs to protect the 200-DMA. CLICK HERE FOR THE CHART