Milky Mist shares came under selling pressure on October 12, despite the company issuing a clarification on media reports regarding concerns surrounding company’s paneer products.
At 11:25 am, the newly-listed stock was trading 4.4% lower at Rs 306.85.
In an exchange filing dated October 10, the company said it has taken note of certain media reports and social media posts referring to an alleged communication by the Food Safety and Standards Authority of India concerning the Company's Paneer products.
“In this regard, the Company wishes to clarify that, as at the date and time of this disclosure, it has not received any specific notice, order or communication from FSSAI or the Tamil Nadu Food Safety Department directing an inquiry into the Company's Paneer products, as alleged in the aforesaid media reports. The Company will appropriately respond to any communication received from the concerned authorities and take necessary action, if any, in accordance with applicable law,” the filing said.
"Milky Mist Dairy Food is witnessing short-term weakness after a strong upward rally. The stock is currently trading at Rs 308.35, below its 20-period EMA at Rs 321.31 and 50-period EMA at Rs 318.80, indicating weakening momentum. The RSI is at 34.42, below the 50 mark and its average, suggesting bearish momentum. Immediate support is placed at Rs 305; a breakdown could lead to further downside toward Rs 300. Resistance is seen at Rs 318–322, followed by stronger resistance near Rs 330-335. Fresh buying is not recommended at current levels," said Virat Jagad, Sr. Technical Research Analyst at Bonanza.