F&O: 2 ‘Major Breakdowns’ of Friday’s Session!

Published 20-01-2023, 06:09 pm
TVSM
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PVRL
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The Indian markets ended Friday on a bad note, with the benchmark Nifty 50 index plunging 0.44% to 18,027.65. The Nifty Media index became the top-losing sectoral index for the second straight session, closing with a cut of 1.36% to 1,888.3, the lowest closing since June 2022. 

The overall bearishness was clearly seen today with some of the counters plunging below their key support level. Here’s a list of 2 of the major breakdowns in the F&O space. 

PVR Limited

The theatre chain PVR Ltd (NS:PVRL), with a market capitalization of INR 10,269 crores came out with its Q3 FY23 earnings report on Thursday which seemed to disappoint investors, big time. It posted a profit of INR 16.15 crores, a noticeably better performance over the previous quarter’s loss of INR 71.23 crores. It was also the first quarterly profit in the last 11 as the cinema industry struggled hard amid the Covid-19 pandemic.

Weekly chart of PVR with volume bars at the bottom

Image Description: Weekly chart of PVR with volume bars at the bottom

Image Source: Investing.com

Despite some good numbers and a strong content pipeline in Q4 FY23, investors fled to liquidate PVR shares, and as a result, the stock closed the session 3.99% down at INR 1,610.9 the lowest closing since March 2022. It broke below the important support of INR 1,625 and might soon nosedive to the sub-1,500 level in the near future. The volume on today’s breakdown was recorded at 2.26 million shares, the highest since mid-September 2022.

TVS Motor Company Limited

TVS Motor Company Ltd. (NS:TVSM) is a two-wheeler manufacturer with a market capitalization of INR 48,176 crores. The stock underperformed the Nifty Auto index, as it fell 4.35% to INR 969.9, compared to the latter’s 0.56% cut. It had been falling since the beginning of the year, and today broke below the previous swing low of INR 977.55, marked on 17 January 2022. The current series of lower lows and lower highs is depicting a sustained downtrend.

Daily chart of TVS Motor Company with volume bars at the bottom

Image Description: Daily chart of TVS Motor Company with volume bars at the bottom

Image Source: Investing.com

Today’s closing is the lowest since August 2022. The downward momentum is expected to continue and can throw the prices to around the next support level of INR 925. The options chain data is suggesting a fall of around INR 10 from the CMP, before the current monthly expiry. 

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