• 17 Jun 2024 06:19 PM
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EXPLAINED! Why is Delta Corp share price skyrocketing before Budget 2024?

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Delta Corp share price has risen from ₹110 to ₹136 apiece level in June 2024, delivering 24% return to is shareholders

Delta Corp share price has risen from ₹110 to ₹136 apiece level in June 2024, delivering 24% return to is shareholders

Stock market news: After ushering in June 2024, Delta Corp's share price has been on an uptrend. After bottoiming out at around 110 per share mark, Delta Corp share price ended at 136 apiece on Friday last week, delivering around a 24 percent rise in a fortnight. According to stock market experts, Delta Corp share price is rising on GST slash buzz. They said that the Indian stock market expects a GST cut that will enable companies like Delta Corp to enhance their profitability. They said that the market is discounting that extra profit coming into the balance sheet of Delta Corp in the upcoming quarters. They noted that Delta Corp shares are on the cusp of giving a fresh breakout at around 160. Once the stock breaches this hurdle, we may expect Delta Corp share price to touch the 205 per share mark in the medium term or in the next six months.

Union Budget 2024 in focus

Discussing the factors behind the rise in Delta Corp's share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, stated, "There is a strong market buzz that the Indian Finance Minister Nirmala Sitharaman may announce a reduction in GST in the upcoming interim budget. This speculation has led the market to anticipate additional income in the company's balance sheet in the upcoming quarterly results. The stock is also available at a significant discount due to prolonged sell-off pressure. If the Union Finance Minister in the Modi 3.0 government indeed announces a GST reduction in her budget speech, we can expect a surge in buying of Delta Corp shares post-budget presentation."

Delta Corp share price target

Asked about the technical outlook of Delta Corp share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, "Delta Corp share price is facing hurdle at 160 level. We can expect Delta Corp's share price to touch the 205 mark on breaching this resistance on a closing basis. So, those with Delta Corp shares in a portfolio can hold the scrip for the immediate target of 160, maintaining a stop loss at 105. Those with a long-term perspective can hold the scrip for 205 target in the next six months."

For new investors considering Delta Corp shares, the Anand Rathi expert advises, "You can consider buying Delta Corp shares at the current market price, but it's crucial to maintain a strict stop loss at 105. We recommend a buy-on-dips strategy as long as the stock remains above 105. For a medium-term investment, you can hold the scrip with a target of 205." This clear guidance can help new investors make informed decisions.