Shares of Ola Electric Mobility Ltd on Tuesday extended their gains for the second consecutive session. The stock rose 0.61 per cent to settle at Rs 97.40. At this closing price, it has ascended by 41.28 per cent in the past one month. Despite the mentioned sharp upmove, the scrip has declined 38.17 per cent from its record high value of Rs 157.53, a level seen on August 20,2024.
Earlier this month, the Bhavish Aggarwal-led EV firm received another showcause notice from the Central Consumer Protection Authority (CCPA), seeking additional documents and information in relation to the handling of consumer complaints.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock is currently in an uptrend after hitting its all-time low (Rs 66.60). Investors with a high-risk appetite can add this stock with a one-year investment horizon."
On technical setup, a few analysts suggested that the counter looked 'bearish' on charts after its recent run-up. Near-term support could be seen in the Rs 92-80 zone. On the higher end, upside potential may be capped in the Rs 100-110 range.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The overall structure is not looking good on daily charts. One can buy the stock around Rs 85 level for an upside target of Rs 100. Keep stop loss placed at Rs 80."
Sebi-registered research analyst AR Ramachandran said, "Ola Electric Mobility is bearish on daily charts with strong resistance at Rs 100.4. A daily close below support of Rs 92 could lead to a downward target of Rs 81 in the near term."
Kushal Gandhi, Technical Analyst at StoxBox, said, "The price action of Ola Electric has experienced a noteworthy and rapid recovery after hitting a significant low of Rs 66.66. We recommend purchasing the stock for a target price of Rs 110, while maintaining a stop loss at Rs 91.10."
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.