Delta Corp, Nazara: Should you bet on online gaming shares ahead of Diwali?

We are just a fortnight away from Diwali 2024 - one of the most widely celebrated festivals in India. The near week-long festival, known as a celebration of the victory of light over darkness - is celebrated with various Hindu religion rituals, traditions and decorations. Amid the festivities, family and friends tend to indulge in games and fun activities. With changing lifestyle, online gaming, too, has gained traction.

In India, Delta Corp is one of the biggest listed players in the online gaming industry, including the prominent casinos in Goa and few luxury hotels. Similarly, Nazara Technologies and OnMobile Global operate diversified online gaming, including sports media platforms. Zensar Technologies, on the other hand, provides online development and solutions to such gaming companies among others

Upside Potential: 14.8%

Support: Rs 118

Resistance: Rs 128; Rs 133

Delta Corp stock has been trading with a negative bias on the daily chart since the start of the month. The stock, however, has witnessed a minor positive divergence on the weekly scale, with its 20-WMA (Weekly Moving Average) crossing the 50-WMA; thus raising some hopes of a likely pullback.

Nazara Technologies

Current Price: Rs 909

Downside Risk: 14.6%

Support: Rs 830

Resistance: Rs 917; Rs 970

Nazara Technologies is seen testing the 100-DMA at Rs 910 levels on the daily scale. The stock has been sustaining above this long-term moving average since June 06. That apart, the stock seems to be struggling to stay afloat its 20-WMA, which stands at Rs 917.

The key momentum oscillators on the daily and weekly chart are indicating a negative bias. Hence, the Nazara Technologies stock may face downward pressure in the near-term. On the downside, the stock may test its 200-DMA at Rs 830; below which a dip to Rs 776 seems likely.