10% falls as JM Financial is barred by SEBI from managing debt securities as lead manager

After being prohibited from serving as the lead manager for any public debt securities offering by the Securities and Exchange Board of India, the market regulator, JM Financial, had its shares decline by over 10% to Rs 79.30.

For a period of sixty days after the order date, SEBI did, however, let the business to remain the lead manager for currently outstanding public debt issuance.

The business said in an exchange filing that “SEBI shall undertake an investigation into the issues covered under the said Order and complete the same within a period of six months from the date of the Order.”

The stock has been concentrated in a wider range of 60-115 over the last four years. In January of this year, it attempted its top range once again but was unable to break through, resulting in pressure once more.

JM Financials is now trading in the center of the range and is probably consolidating after a recent decline. “Traders could think about keeping a stop at 75 for the current longs and refrain from buying new until it stabilizes,” Religare Broking Senior Vice President of Technical Research Ajit Mishra said.

A R Ramachandran, a co-owner of Tips2trades and another market player, said that while the stock is oversold on the daily charts, there is significant resistance above 85.10. The stock is also somewhat negative. He went on to say that investors should only purchase if the daily close is above the previously identified resistance with a short-term objective of 103. There will be strong support at levels 67 and 76.

The stock has lost around 11% over the previous six months and more than 19% over the last five days. Nonetheless, it has increased by 10.23% during the previous five years and by over 29% in the last year.