Patanjali Foods shares down 20% today: What should investors do?
What's the story
Stock price of Patanjali Foods has plunged nearly 20%, hitting a new 52-week low of ₹330.95 on the Bombay Stock Exchange (BSE). The decline comes after heavy selling and high trading volumes, with around 2.6 crore equity shares changing hands today. This is over six times the stock's average trading volume, indicating significant institutional participation.
Market analysis
Technical experts suggest bearish momentum
Sudeep Shah from SBI Securities noted that the stock's decline confirms a major consolidation breakdown on the daily chart.
He added, "The RSI...has also broken down, indicating strengthening bearish momentum."
The stock is trading below all major long-term moving averages, showing a loss of momentum.
Shitij Gandhi from SMC Global Securities said that unless the stock reclaims the ₹400-435 resistance zone decisively, it will remain weak.
Performance decline
Stock has declined over 40% in a year
Patanjali Foods's stock has fallen 21% in a month and 28% in three months. Over six months, the stock has dropped by 38%, and it has plunged 42% in the last one year.