BackRakesh Jhunjhunwala portfolio stock gives breakout. Should you buy now?
Rakesh Jhunjhunwala portfolio: Deferment of 28 per cent GST on casinos is positive news for Delta Corp, believe stock market experts
PremiumRakesh Jhunjhunwala portfolio: The GST Council on Wednesday deferred the proposal to levy 28 per cent GST (Goods and Services Tax) on online gaming, casino and horse racing. After the announcement by the Government of India (GoI) about its decision on tax proposals, Delta Corp shares started surging northward as the company has strong exposure in casino business. The Rakesh Jhunjhunwala-backed company's stock ended near 2 points higher at ₹181.40 apiece levels on NSE giving fresh breakout at ₹178 levels.
According to stock market experts, deferment of 28 per cent GST on casinos is positive news for Delta Corp and Wednesday's rally in Delta Corp share price is a glaring example of it. They said that the stock has given fresh breakout at ₹178 levels on closing basis. Experts went on to add that Delta Corp shares are in 'uptrend' now and it may go up to ₹195 levels in near term.
Speaking on the reason for rise in Delta Corp share price on Wednesday, Punit Patni, Equity Research Analyst at Swastika Investmart said, "The deferment of 28 per cent GST on casinos is positive news for Delta Corp. At present, services of the casino, horse racing, and online gaming attract 18 per cent GST, which was proposed to be raised to 28 per cent."
Expecting Delta Corp share price rally to further continue, Mudit Goel, Senior Research Analyst at SMC Global Securities said, "Delta Corp share price has given fresh breakout at ₹178 apiece levels on closing basis. The stock is now looking in uptrend and it may go up to ₹195 levels, its immediate resistance levels." Mudit Goel of SMC Global Securities said that those who have this stock in their portfolio can continue to hold the stock upgrading the trailing stop loss at ₹174.
"Fresh buyers can also buy Delta Corp shares at current levels for near term target of ₹195 maintaining stop loss at ₹174 levels," said Mudit Goel of SMC.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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