Ola Electric shares climb 6% today; will this rebound sustain?

Shares of Ola Electric Mobility Ltd saw a decent recovery in Thursday's trade, rising 5.97 per cent to hit a high of Rs 54.85. The stock was last seen trading 3.71 per cent up at Rs 53.68. Despite the mentioned uptick, it has crashed 47.48 per cent in the last six months.

The pure-play EV firm recently said Rosmerta Group has filed a memo for withdrawal of petitions filed before the National Company Law Tribunal (NCLT), Bengaluru, as it has amicably settled all outstanding dues between its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd, and the Rosmerta Group.

The Bhavish Aggarwal-led company said Rosmerta's petition matter now stands fully resolved, adding that it remained committed to fulfilling its obligations and maintaining professional relationships with all stakeholders. Rosmerta also mentioned that no further causes of action exist between Rosmerta Group and Ola Electric, whose relationship will now be governed by the settlement agreement executed between them.

A market expert said Ola Electric's stock looked slightly bullish on daily charts while another suggested that it is suitable only for high-risk-taking investors. Support on the counter could be seen in the Rs 51-48 range and a decisive move above Rs 55 is required for further upside potential.

"The stock has corrected from Rs 100 level to around Rs 50. It is highly volatile and suitable only for high-risk appetite investors. We need to see how the company is taking care of the customer issues and concerns over sales figures. The EV firm is also going to launch its battery in April. One has to monitor how this will impact the company's margins," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Support will be at Rs 51 and resistance at Rs 55. A decisive move above Rs 55 level may trigger a further upside towards Rs 60. The expected trading range will be between Rs 50 and Rs 60 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Ola Electric stock price is slightly bullish on daily charts with strong support at Rs 51. A daily close above the resistance of Rs 57 could lead to an upside target of Rs 64 in the near term," said Sebi-registered research analyst AR Ramachandran.

"Those who are struck at Rs 100-plus level, don't average the stock at this point. Putting your money somewhere else could help you to generate a good alpha. Technically, it could be a good buy at current levels but only for a short-term view. One can consider buying it with a stop loss of Rs 48. Just play the stock only for a short bounce and get out. I don't think that the stock will move above Rs 65 levels in the next three months. If you are struct at higher levels, just the investment be. Whenever your price comes in, let's say in the next 1 or 2 years, you exit it but do not average this stock. I don't see any significant upside above Rs 65-70 levels. Those looking to exit should do it in a partial way, keeping a trailing stop loss," said Sebi-registered analyst Mitesh Panchal.

The scrip traded higher than the 10-day simple moving average (SMA) but lower than the 5-day, 20-, 30-, 50-, 100-day and 150-day SMAs. Its 14-day relative strength index (RSI) came at 65.50. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Founded in 2017, Ola Electric primarily manufactures EVs and certain core components such as battery packs, motors and vehicle frames at the Ola Futurefactory. As of December 2024, promoters held a 36.78 per cent stake in the E2W player.