Ola Electric shares dive 10% in 5 sessions to hit fresh all-time low; should you add or avoid?

Shares of Ola Electric Mobility Ltd continued their downward move for the fifth consecutive session, falling 2.23 per cent to touch a new record low of Rs 55.64 in Friday's trade. At today's low level, the stock has slumped 9.86 per cent in five trading days.

The pure-play electric vehicle (EV) firm, in a BSE filing, said it sold over 25,000 units in February with a market share of over 28 per cent, cementing its market leadership in the EV two-wheeler segment.

The company recently announced the renegotiation of its contracts with its vehicle registration agencies, a move that temporarily affected registration numbers on the VAHAN portal during February 2025. The negotiations aim to reduce costs and streamline the registration process.

Ola Electric recorded good sales in February this year and reemerged as market leader in the EV 2W space, said market expert Arun Kejriwal. "The company is getting its act together, hoping to turn profitable faster than earlier. It can be an attractive stock to look at in the longer run when the market has bottomed out," he added.

Technically, support could be seen in the Rs 53-45 range and immediate resistance may be found above the Rs 60 level. "The counter looked weak on charts and can slip towards Rs 45 level in the near term. Investors may exit at the current market price," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Technically, the stock has been in a selling spree with no sign of pullback. The structure looks bleak with limitations on any technical support zone. A decisive recovery beyond the breakdown zone of Rs 67-68 could only bring the momentum back in the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 53 and resistance at Rs 60. A decisive move above Rs 60 level may trigger a further upside towards Rs 64. The expected trading range will be between Rs 52 and Rs 64 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 23.96. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Founded in 2017, Ola Electric is a pure-play electric vehicle player which 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.