Gitanjali Gems is now down 20% and at the lower circuit on the NSE. The stock has fallen from it’s Rs. 500 close on Friday to Rs. 400, and there are more than 10 lakh (1 million) sell orders, with no buyer in sight.
(Note that it’s still substantially above the 52 week low)
The stock has been showing signs of cramping. The news about the RBI cutting credit for gold imports was in May for banks, and they extended the circular to any importing agency in June. The news took a while to sink in. But the technicals seemed to show a slowdown a little while earlier:
It’s difficult to have traded this, since Gitanjali isn’t in the F&O list. If you held it from 2011, you might have had a purchase prices as low as 182 or as high as 405, so it’s still not too bad. However, with no buyers in sight, it’s not clear where this fall will end.
