Why Coal India shares are falling for fourth day in a row — explained
Coal India shares witness heavy sell-off pressure as the PSU company announces offer for sale at a discounted price, causing shareholders to offload their positions
Stock market today: Cola India shares witnessed heavy sell off pressure in early morning deals and extended its downtrend for fourth straight session. Coal India share price today opened lower and hit intraday low of ₹229.55 apiece levels on NSE, logging around 4.80 per cent intraday dip on Thursday. Coal India shares are under pressure since Tuesday deals as the PSU stock has announced offer for sale at discounted price of ₹225 per share.
Coal India OFS has opened today and it will remain open for subscribed till 2nd June 2023. According to stock market experts, Coal India share price is under pressure after Coal India OFS news as Coal India OFS is offered at a high premium and shareholders of the company are offloading their position as they have an option to buy scrip at discounted price via OFS. So, it is more strategic than any flaw in the fundamentals of the company. They advised positional investors to buy around ₹220 apiece levels as the stock may bounce back strongly after the end of Coal India OFS.
What is dragging Coal India shares
On why Coal India shares are nosediving, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Coal India shares are falling for last four sessions as the PSU company has announced OFS at ₹225 per share, which was much lower from the market price of the scrip. So, this selling is more strategic as shareholders are offloading their positions to subscribe at lower price offered by the PSU. We may see strong rebound in Coal India share price after the close of its OFS."
Advising bottom fishing in Coal India shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Coal India shares shares have strong support at ₹210 apiece levels. One can buy this scrip in ₹220 to ₹230 range maintaining stop loss at ₹210 per share levels. Coal India shares may bounce back strongly and hit ₹250 to ₹260 apiece levels in short term."
Coal India OFS news
Coal India OFS has opened today and it will remain open for subscribers till 2nd June 2023. The PSU company has offered OFS at ₹225 apiece levels, which is still below its current market price of around ₹230 apiece levels.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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