The stock opened at a 10% lower circuit of ₹222.15 apiece on the BSE, but then continued its downfall to hit an intraday low of ₹178.20 apiece. Delta Corp shares are tad above its 52-week low of ₹172.30 apiece hit on July 12, 2022.

The Goods and Services Tax (GST) Council on July 11 levied a 28% uniform GST on online gaming, horse racing, and casinos on the full value of the bets, which is expected to be negative for online gaming and casino industry.

Read here: GST shock: Online gaming, casinos to be taxed at 28%

However, analysts believe that the plunge in Delta Corp shares can be a good opportunity to buy the stock given its pricing power and long term business prospects.

"The GST Council decision had a knee jerk reaction on Delta Corp shares. However, the company is the only listed player in the casino industry and has the pricing power to pass on the cost to customers. Its business is expected to grow despite high GST rates," said Avinash Gorakshakar, Director Research, Profitmart Securities.

Gorakshakar expects the company may pass on the cost to consumers in the next quarter and believes it will not have much impact on the operational business viability of the company.

"The business will continue to grow in the long term. The stock price plunge can be utilised to buy and accumulate the shares at these low levels for the long term," Gorakshakar explained.

Also Read: GST on Online Gaming: Delta Corp share price tanks 20%, Nazara Tech share price drops 5% on 28% tax levy

On the technical front, Delta Corp shares reached the crucial support level of ₹175, which is considered critical due to its historical significance in March. 

"It is important to note that a close below this level could potentially result in further weakness, potentially pushing the stock toward the 140 level. On the upside, the 200-day moving average (DMA) at 215 represents an immediate and critical resistance, followed by a major hurdle at 240. Breaking through these levels would require considerable strength and could signal a shift in momentum," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

However, if Delta Corp manages to hold above the 175 support level, Meena believes there is a possibility of a consolidation phase within the range of 200 to 240. This, according to him, means that the stock may trade within this range without any significant directional bias.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd said that Delta Corp stock has plunged drastically in a single day on the back of negative news and technically has indicated a big bearish candle to weaken the trend breaching below the 50EMA and also the 200 period MA. 

"The major support would be visible near the 173 zone and for the bias to improve overall it needs to recover above the significant 200 period MA level of 214 to establish some stability and conviction," Parekh said.