Zomato shares up 155% from one-year low level; what's next on technical charts?

Shares of online food aggregator Zomato Ltd have slipped from their one-year high levels. The stock on Friday settled 0.22 per cent higher at Rs 113.20. At this closing price, the scrip was down 10.23 per cent from its 52-week high of Rs 126.10, a level seen on November 7, 2023. That said, the multibagger counter has gained 155.24 per cent from its one-year low price of Rs 44.35, hit on January 25 this year.

On technical setup, support on the counter could be largely seen around Rs 110 levels. On the higher side, the stock may witness some resistance near its one-year high level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Zomato is hovering in a cycle of higher highs – higher lows on daily timeframe and looks positive for the short-term period. The bullish gap of Rs 108 is likely to act as a support zone and till it sustains above the same, there is no sign of caution in the counter. On the higher end, the swing high near the Rs 125 zone is likely to be seen as an immediate hurdle and a decisive surpass could only trigger fresh momentum in the counter."

Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed some profit booking from the peak zone of Rs 126 level. Near-term support is at Rs 109. The overall bias is maintained positive. A decisive breach below the Rs 102 zone can only weaken the bias."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The stock has seen a massive rally when compared to its one-year lows. One can book immediate profit around Rs 110–115 levels and avoid fresh longs for now."

AR Ramachandran from Tips2trades said, "Zomato is slightly bullish with support at Rs 113 on the daily charts. A close below this support could lead to target of Rs 104 in the near term. Strong resistance will be at Rs 119."

The counter traded lower than the 5-day, 10-, 20-, 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150- and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 46.97. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 116.49 against a price-to-book (P/B) value of 4.49.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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