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Zomato shares at ₹45 or ₹75? What's next for the stock after recent fall?

10 Jan 2023 Zinkpot 147

 Business Today - Zomato share price: On Monday, a total of 24.46 lakh shares changed hands on BSE, which was lower than Zomato's two-week average volume of 34.20 lakh shares. The turnover on the counter stood at Rs 13.73 crore. The food aggregator commanded a market capitalisation (m-cap) of Rs 47,889.77 crore at the close. Read more
 

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  • Technical analysts said the Zomato stock could see rangebound trading between ₹45 and ₹75 levels, with ₹45 being good support. Investors, they said, can look to accumulate the stock at this level for a target of ₹75.
  • "Zomato is in a secular downtrend and is hovering well below all its major SMA on the daily chart, indicating inherent weakness. Any fall below the recent swing low of Rs 53.20 could further disrupt the chart structure, and the stock might plunge toward the Rs 48.50 odd zone. On the contrary, the stock has a stiff resistance of the bearish gap placed around the Rs 59.55-59.80 zone, followed by Rs 62-64 odd levels. In the meantime, the stock is expected to hover in between the mentioned range until a decisive breakthrough happens on either side", according to Osho Krishan, Senior Analyst - Technical and Derivative Research at Angel One.
  • Ravi Singhal, CEO of GCL Securities, said,"Zomato is consolidating for a long time. The stock is in the range of ₹45 to ₹75." Investors can buy near support of ₹45 and book profit around ₹75 levels, Singhal added.
  • As per Ravi Singh, Vice-President and Head of Research at Share India, the investors should exit the stock because the recent turmoil in Zomato's management is affecting the stock in negative manner. However, the company has shown slight improvement in its September quarter financial numbers, but many concerns still remain for Zomato. The stock may remain under selling pressure and may touch the levels of ₹50 in near term.
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