Ideaforge Technology shares crash 26% in a month. What should traders do now?
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Shares of Ideaforge Technology have seen a steep decline of 26.4% over the last one month, with the stock currently hovering around the Rs 431 mark. The drone technology firm, which had witnessed significant investor interest in the past year, has now entered a technically weak zone.This has prompted mixed views from market experts on how investors should approach the stock at current levels.According to Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, the stock is approaching a critical support zone.'IDEAFORGE has witnessed a sharp correction recently and is currently trading around Rs 443, aligning closely with the 61.8% Fibonacci retracement level of its prior rally. Notably, the stock's previous breakout point lies near Rs 420 — reinforcing the significance of the 420–445 support zone,' he said.Patel believes this confluence suggests the potential for a base formation. He advises traders to 'accumulate the stock in a staggered manner between Rs 440 and Rs 420, with a target of Rs 500 and a stop-loss at Rs 395 on a daily closing basis.'However, a more cautious view is held by Kunal V Parar, VP of Technical Research and Algo at Choice Broking, who highlights persistent weakness in the chart structure. 'On the daily chart, the stock is trading below its 100-Day Moving Average, indicating continued bearish momentum.'He adds that the stock has repeatedly faced strong resistance around the 650 level and is moving within a downward-sloping channel, which points to sustained downside pressure.Parar also noted that the daily RSI is at 25.96, below the 30-mark, signaling weak momentum. Based on the current setup, he expects further downside toward the Rs 395–Rs 355 zone, with resistance placed around Rs 480.From a fundamentals standpoint, Saurabh Jain, Head of Equity Research at SMC Global Securities , also echoes a bearish tone.'The stock, which tested the 650 level in June, has since entered a corrective phase, witnessing a sharp decline to the 440 level — a correction of nearly 25% over the past three months.'He points out that Ideaforge is 'trading below all key short-term and long-term moving averages , indicating a bearish bias.'Jain sees Rs 400 as immediate support, but cautions that 'the overall trend remains bearish as long as the stock trades below the 490 resistance mark.'He advises that 'any technical rebounds should be viewed as opportunities to unwind long positions unless a clear reversal signal emerges.' If the stock breaks below Rs 400 decisively, Jain expects the decline to extend toward Rs 385.While some technical indicators suggest that Ideaforge may be approaching a near-term base, broader momentum and chart signals continue to reflect caution. Traders with a higher risk appetite may consider staggered accumulation near support zones, but conservative investors may prefer to wait for stronger confirmation of a reversal.Also read: Reliance Power shares down 31% in 1 month. Should you buy the dip or steer clear? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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