SAMMAAN CAPITAL – “Regulatory Storm Hits the Rally”

(formerly Indiabulls Housing) has seen a sharp correction after the Supreme Court slammed CBI/ED/SEBI for a “friendly probe” into alleged financial irregularities. The case involves accusations of round-tripping, siphoning, Companies Act violations and money-laundering, with the next SC hearing scheduled in December. This overhang has triggered high volatility. Technical View: The stock broke down sharply from the ₹185–190 zone, slipping towards ₹150–160 support. RSI has collapsed into the 30s, reflecting strong bearish momentum. Volumes spiked on the sell-off, indicating institutional unwinding. Unless the stock reclaims ₹175, the trend stays weak. Fundamentals: Business outlook has potential — IHC Abu Dhabi is investing to take ~40–45% stake, boosting capital to grow the housing finance business. But regulatory risks now overshadow fundamentals. Previous concerns around asset quality and legacy issues are again in focus. Analyst View: No strong BUY ratings due to uncertainty. Market stance = High Risk / Event-Driven. Short-term: Avoid Medium-term: Wait for SC clarity