Andhra Bank on Monday plunged more than 14% intraday after the Enforcement Directorate on Friday filed a charge sheet against former Andhra Bank director Anup Prakash Garg in connection with a Rs 5,000 crore bank fraud involving Sterling Biotech Ltd (SBL) of the Sandesara group of companies. Volume was heavy indicating long term players in control in the markets.
In its supplementary charge sheet, the ED claimed that the Sandesaras had paid over Rs 1.52 crore to Garg as quid pro quo for facilitating bank credit and other transactions. Garg was arrested by the ED on January 12 and is in judicial custody. The agency has attached his properties worth Rs 1.23 crore.
Post the Plunge Andhra Bank Manage to recover most of its losses and ended with a potential trend exhaustion setup. Possible Medium term trend reversal is expected. Good for medium term. However one cannot play this counter in FNO positional as the stock went into FNO ban.