1:1 Bonus Shares: RITES vs Phoenix Mills, 20 September Ex-Bonus Date; Which Stock To Buy?

The blue-chip companies RITES and Phoenix Mills will be closely watched in the coming days and may witness price swings since they have both announced a 1:1 bonus share and set September 20 as the ex-bonus date. Phoenix Mills has set the record date for the bonus issue at 21 September 2024, whereas RITES has set the date for 20 September 2024. Phoenix Mills wrapped up 1.48% down on Wednesday at Rs 3,441 on the NSE, while RITES closed 4% lower today at Rs 682.50, as both companies approach their respective record dates for the 1:1 bonus issue.

RITES Bonus Shares

For the purpose of 1:1 bonus issue of 1 equity share of Rs. 10/- each fully paid-up for every 1 existing equity share of Rs.10/- each fully paid-up, the Board of Directors have fixed Friday, 20th September 2024 as the record date for the purpose of bonus issue.

RITES Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The stock is currently trading between 705 and 710. It is in a consolidation phase following an uptrend, with the price action forming a symmetrical triangle pattern over the past few months. This indicates a potential breakout, which could lead the stock toward 800, with immediate resistance at 735 and strong support around 680. If the stock breaks above 720, it could resume its upward momentum. The Relative Strength Index (RSI) is at 62.2 and trending upward, reflecting increasing buying pressure."

"Additionally, the recent Rs 5 dividend announcement and a 1:1 bonus scheduled for 20th September 2024 may further bolster investor sentiment. To prudently manage risk, a stop-loss (SL) at 660 is advisable, safeguarding against unexpected market reversals. In summary, based on the technical analysis and current market conditions, RITES presents an attractive buying opportunity for those targeting a price of 800, provided that proper risk management measures are followed," the analyst further added.

The Phoenix Mills Bonus Shares

"We wish to inform you that the Company has fixed Saturday, September 21, 2024 as the 'Record Date' for the purpose of ascertaining the eligibility of Shareholders entitled for issuance of Bonus Equity Shares of the Company in the proportion of 1 (One) new fully paid up Equity Share having face value of Rs. 2/each for every 1 (one) existing fully paid up Equity Share having face value of Rs. 2/- each, subject to the approval of Shareholders of the Company at the ensuing Annual General Meeting to be held on Friday, September 13, 2024," said The Phoenix Mills in a regulatory filing.

Phoenix Mills Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "PHOENIXLTD is currently trading around 3493 and has entered a consolidation phase. A potential symmetrical triangle pattern is forming, which often signals a bullish continuation. A breakout above the resistance level of 3580 could lead to an upward movement, with a short-term target of 3840. On the downside, immediate support is located at 3400, which may present buying opportunities on dips."

"The Relative Strength Index (RSI) is at 47.40, indicating neutral market conditions. Additionally, the company has announced a 1:1 bonus, scheduled for 20th September 2024. To manage risk, a stop-loss at 3280 is advisable to protect against an unexpected market reversal. In conclusion, considering the technical analysis and current market conditions, PHOENIXLTD appears to present an appealing buying opportunity for those targeting 3840, provided that appropriate risk management measures are in place," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.