Shares of Ola Electric Mobility Ltd on Monday continued to drop for the second consecutive session, halting their strong recovery mode. The stock today slipped 3.78 per cent to close at Rs 92.23. At this price, it has tanked 6.37 per cent in just two sessions. Despite the mentioned fall, the scrip has climbed 38.48 per cent from its all-time low value of Rs 66.60, a level seen on November 22, 2024. That said, the two-day downward move in Ola Electric's stock has been in line with a downtick in domestic benchmarks BSE and NSE.
The Bhavish Aggarwal-led EV firm recently received another showcause notice from the Central Consumer Protection Authority (CCPA), seeking additional documents and information in relation to the handling of consumer complaints.
"The CCPA has provided a timeline of 15 days from the date of email communication for the Company to submit the response in respect of seeking additional documents and information. The Company will ensure a timely response within the specified timeframe," the pure-play electric vehicle (EV) firm stated. The two-wheeler EV maker was facing several service-related issues in the recent past.
Technically, Support on the counter could be seen at Rs 92, followed by Rs 86.30 level. And, resistance may be found above the Rs 98 range.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock after witnessing a significant slide from Rs 157 level has bottomed out near Rs 66. It has witnessed a decent pullback from its all-time lows. Investors can hold on to it keeping a strict stop loss of Rs 92. On the higher end, a decisive move above the Rs 117-120 zone is required to further strengthen the trend. This view will be negated if the stock slips below Rs 92."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Immediate support will be Rs 92 and resistance Rs 102.5. The expected trading range will be between Rs 92 and Rs 106 for the short term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, "Near-term support will be at Rs 92. The stock can hit an upside target of Rs 98 in the near term."
Kushal Gandhi, Technical Analyst at StoxBox, said, "The counter presents a favourable risk-to-reward opportunity with a target price of Rs 102. It is recommended to maintain a strict stop loss at Rs 86.30."
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.