Innova Captab share price extends losing streak for the sixth consecutive session, down 18%. Here’s what analysts say

Innova Captab share price has continued its downward trend for the sixth session in a row, reflecting ongoing market fluctuations. Analysts note that the consistent warnings from several credible sources regarding the overall market being overvalued and at risk of a substantial correction are becoming apparent. Innova Captab share price has dropped by almost 18% during the past six sessions.

The company announced in an exchange filing that it has begun commercial production at its advanced manufacturing facility located in Kathua, Jammu. This facility features four specialized manufacturing blocks: General, Cephalosporin, Penicillin, and Penum, and is equipped to produce a wide variety of products, including oral solid dosages, dry powder injectables, dry syrups, BFS, large volume parenterals, and respiratory respule products.

With this new development, the company now operates a total of five manufacturing facilities at a consolidated level, which include nine separate manufacturing blocks.

“This marks a significant milestone in our growth journey, enhancing both our production capacity and product basket. This will also enhance our ability to meet the evolving needs of our customers. This expansion is a strategic step in line with our long-term vision to strengthen our market position and fuel sustainable growth,” said Vinay Lohariwala, Managing Director in an exchange filing.

The firm also stated that the facility has been set up with an investment exceeding ₹450 crores, and with the commencement of commercial production, the Company is well-positioned to gain from the Central Government’s ‘New Central Sector Scheme,’ which offers a 6% per annum Capital Interest Subvention and a GST-linked incentive amounting to 300% of the investment in plant and machinery within a 10-year period.

However, despite this new development Innova Captab share price today was down over 4%, the stock opened at ₹1,059.30 apiece on BSE. Innova Captab share price touched an intraday high of ₹1,061 per share, and an intraday low of ₹996.65 apiece.

Innova Captab share price has surged by 124% from its initial public offering price of ₹448, making it a multibagger stock. Innova Captab shares debuted on the market on December 29, 2023. The share price experienced a listing gain of 20.9%.

Here’s what technical analysts say on Innova Captab share price

Sachin Gupta, Senior Research Analyst at 5paisa explained that after experiencing a sustained upward momentum in prior sessions, the stock has reversed direction from an all-time high of 1,260 and formed a Bearish Engulfing pattern last week, suggesting potential reversal in the near term. This pattern, combined with a negative crossover in the Relative Strength Index (RSI), indicates weakening bullish momentum and signals a shift toward bearish sentiment. The stock has also retreated from the overbought zone, reinforcing this bearish outlook.

However, the stock continues to exhibit a Higher Top & Higher Bottom formation, indicating an overall uptrend, but currently trading near to its immediate support level at the 50-day Exponential Moving Average. On the downside, additional support can be found around the 950 and 900 levels, while the stock faces resistance near the 1,150 level. These key support and resistance levels will be crucial in determining the stock’s near-term direction.

Further, Riyank Arora, Technical Analyst, Mehta Equities Ltd highlighted that Innova Captab has been declining for the last five sessions but maintains a positive overall trend. The stock has major support at 1,000, with the next support at 960, and immediate resistance at 1,150. A bounce-back from current levels is expected, provided the 1,000 support holds. We recommend a buy around current levels with a strict stop loss at 980 on a closing basis. The stock has the potential to revisit 1,150 and move higher if momentum strengthens.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.