Nykaa shares hit all-time low; down over 56% in 2022 so far

Shares of Nykaa's parent FSN E-Commerce Ventures continued their losing streak on Thursday. The stock tanked over 3 per cent to hit a new low of Rs 149.35 on BSE.

At 9:50 hours, the shares were trading 1.70 per cent at Rs 150 on BSE. The market cap of the firm fell to Rs 42,724.14.

The stock has been under relentless selling pressure ever since the company's lock-in period expired for pre-IPO investors and the bonus issue announcement.

Recently, Kravis Investment Partners II sold 36.7 million Nykaa shares at a price of Rs 171, worth Rs 629 crore via multiple block deals on the BSE.

Earlier, Axis Mutual Fund (5,50,000 shares), Regal Investment Fund (5,50,000 shares), Tasman Market Neutral Fund (1,83,711 shares), and Amazon Market Neutral Fund (1,85,643 shares) were among the buyers in block deals.

Lighthouse India Fund III had on November 16 sold three crore Nykaa shares worth Rs 525.39 crore in a bulk deal. The shares were sold at an average price of Rs 175.13 apiece. The same fund sold 96,89,240 Nykaa shares on November 10 at an average price of Rs 171.75 per share.

Rupak De, Senior Technical analyst at LKP Securities, said, "The stock has been under selling pressure for the last few days, taking the stock below the previous trough of Rs 162.50, suggesting further weakening in demand. The stock looks like a sell-on rise till it remains below Rs 180, with the resistance zone pegged at Rs 170-180. A decisive move above Rs 180 may induce a bullish reversal in the stock price."

"Nykaa is in a secular downtrend with no sign of respite. Technically, the stock is looking very weak as it hovers well below all its major moving averages on all time frames. And until we witness any massive trend reversal, the negative view remains intact on the counter, said Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One.

Nykaa stock is down over 58 per cent from its adjusted 52-week high of Rs 364.16 and over 56 per cent in 2022 so far. 

Disclaimer: The stock mentioned in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position