Patanjali Foods share price crashed nearly 20% on Wednesday, extending its losses for the third consecutive trading session, weighed down by heavy selling. The Baba Ramdev promoted company’s stock declined as 19.5% to a fresh 52-week low of ₹328.05 apiece on the BSE.
The decline in Patanjali Foods share price was accompanied by significantly elevated trading activity. Around 2.6 crore equity shares, representing nearly 2.43% of the company’s total equity, changed hands on the stock exchanges on July 15.
This was more than six times the stock’s average trading volume. The sharp surge in delivery volumes also indicates substantial institutional participation.
Technical View
On the technical front, Patanjali Foods share price crash today confirmed a major consolidation breakdown on the daily chart, which was accompanied by a sharp surge in volumes, lending credibility to the bearish move, noted Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities.
“The RSI, which had been moving sideways, has also broken down, indicating strengthening bearish momentum. The DI lines have widened, with DI- positioned well above DI+ on the ADX indicator, highlighting strong seller dominance. Additionally, Patanjali Foods stock is trading significantly below the lower Bollinger Band, reflecting heightened selling pressure,” said Shah.
According to him, the next key support on the downside for Patanjali Foods shares is ₹330–325 zone, and a decisive breach below this level could accelerate the decline towards ₹310 in the short term.
“On the upside, the ₹380 – 385 zone is likely to act as the immediate resistance,” Shah added.
Patanjali Foods stock price breakdown below the key support zone, accompanied by exceptionally high trading volumes, has also dragged the stock below all its major long term 100-day, and 200-day Exponential Moving Averages, reflecting a significant loss of momentum across both the short- and long-term timeframes.
“Patanjali Foods share price action has consistently respected a falling trendline, which continues to act as a major dynamic resistance near ₹430-435. The recent breakdown below the crucial horizontal support level of ₹400 confirms a fresh bearish continuation, with this level now expected to act as immediate resistance on any pullback. On the downside, the next major support is visible around ₹300-305 zone,” said Shitij Gandhi, AVP – Equity Technical Research, SMC Global Securities.
According to him, unless Patanjali Foods stock price reclaims the ₹400-435 resistance zone decisively, the broader technical setup is likely to remain weak, and any short-term recovery is expected to attract fresh selling pressure rather than sustained buying interest.
Sachin Gupta, VP – Technical Research at Choice Equity Broking noted that although the 14-day Relative Strength Index has entered the oversold zone, suggesting the possibility of a short-term pullback or relief rally, such a move is likely to be technical in nature rather than a confirmation of trend reversal.
“From a technical perspective, the ₹390 – ₹400 zone is expected to act as an immediate resistance area, where any recovery attempts may attract fresh selling pressure. A meaningful improvement in the overall chart structure will only emerge if the stock manages to build a stable base over the coming sessions and reclaims the ₹435 level on a sustained closing basis,” said Gupta.
Until then, he believes the broader trend remains decisively bearish, and advises traders to avoid aggressive bottom-fishing while waiting for clear signs of stabilization before considering fresh long positions.
Patanjali Foods Share Price Performance
Patanjali Foods share price has fallen 21% in one month and has declined 28% in three months. The FMCG stock has dropped 38% in six months, while it has plunged 42% over the past one year.
At 12:35 PM, Patanjali Foods share price was trading 17.60% lower at ₹335.90 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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