Shares of Ola Electric Mobility Ltd witnessed a sharp rebound in Monday's trade. The stock slipped 7.06 per cent to hit a day low of Rs 81.25 in early deals. As the session progressed, it moved up 16.31 per cent from the mentioned low level to hit a high value of Rs 94.50.
Today's recovery in the share price came after the Bhavish Aggarwal-led EV company announced plans for a four-fold expansion of its company-owned store network to 4,000 by December 20, 2024.
"With over 3,200 new stores set to open, Ola Electric will operate India's largest EV distribution network, covering all the country's pin codes. It is one of the world's most significant expansions of the EV footprint, bolstering access, growth and adoption in the country. All the newly launched stores will be co-located with service facilities, strengthening the company's service network all across the country," the company stated in a release.
Aggarwal, Chairman & Managing Director of Ola Electric, said, "Ola Electric's massive network expansion will be a pivotal moment in the country's journey towards #EndICEAge. With our wide D2C network and the touchpoints under our Network Partner Programme, we will cover the entire country beyond tier-I and tier-2 cities. It will enable our best-in-class product offerings to democratise electric mobility, adding buoyancy to the domestic EV economy."
Separately, the pure-play EV firm has recently launched its Gig and S1 Z range of scooters starting Rs 39,999 (ex-showroom).
Technically, the counter looked 'strong' on daily charts. With that being said, support on the counter could be seen in the Rs 84.5-88 range.
"Ola Electric has been in a corrective phase, forming lower lows. However, in the last couple of trading sessions, the counter has seen some respite and surged over 40 per cent from its lifetime low," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock looked strong on daily charts and can hit an upside target of Rs 98 in the near term. Keep stop loss placed at Rs 88," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"The stock is presenting a favorable risk-to-reward opportunity with a target price of Rs 102. It is recommended to maintain a stop loss at Rs 86.30," said Kushal Gandhi, Technical Analyst at StoxBox.
"Support will be at Rs 84.5 and resistance at Rs 95. A decisive move above Rs 95 level may trigger a further upside towards Rs 100. The expected trading range will be between Rs 80 and Rs 100 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
Bourses BSE and NSE have put the securities of Ola Electric under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Founded in 2017, Ola Electric is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory. As of September 2024, promoters held a 36.78 per cent stake in the E2W player.