Shares of Jet Airways nosedives 20% on 13th June 2019 after exchange decided to exclude the script from derivative segments w.e.f 28th June 2019. Hence, no contracts shall be available for trading in the JETAIRWAYS with effect from June 28, 2019.
According to a circular issued by NSE, the company has failed to provide quick response and the responses which were received were not satisfactory enough to proceed. Moreover, the company is yet not ready to consider and approve the audited financial result for the year ended 31st March 2019.
The decision has been taken jointly by the exchanges and would be effective from 28 June, it said. Further, the security of the company shall be shifted from Rolling Segment (Series: EQ) to Trade to Trade Segment (Series: BE), wherein the settlement in the stock will take place on a gross basis with 100% upfront margin and 5% price band.
The company has suspended its operations in the month of April led by cash crunch and now lenders are working on the revival of the air passenger carrier. The total liability of the company is around Rs.15,000 cr which includes unpaid salaries and hawkers.
The stock is now quoting at Rs. 87.40, down 20.76% on NSE.
The stock has formed a "Falling Channel" pattern whose reliability is very high. Indicator RSI is reading at 21.88 levels and MACD is also hinting a bearish cross over. Based on the technical structure, we are expecting furthermore downside movement in the counter in upcoming trading sessions.