Online food aggregator Zomato Ltd witnessed a 5.13% dip in its shares during Wednesday’s trading session, prompting speculation on whether the stock could revisit its one-year high level of Rs 141.55. Despite this drop, Zomato has shown remarkable growth, surging 185.68% from its 52-week low of Rs 44.35 in January last year.
Technical analysts suggest that the support for the stock could be in the Rs 120-110 zone, while immediate resistance may be found above the Rs 135 level. A decisive breach above Rs 135 is seen as crucial for further upside potential.
Osho Krishan, Senior Research Analyst at Angel One, commented, “Zomato is in a secular uptrend, hovering in the cycle of higher highs – higher lows. The stock is likely to have in-between blips, but till it sustains above the Rs 120-115-odd zone, there should not be any caution.”
AR Ramachandran from Tips2trades noted, “Zomato is bearish on daily charts with strong resistance at Rs 135. A daily close below support of Rs 125 could lead to a target of Rs 112 in the near term.”
DRS Finvest founder Ravi Singh expressed concern, stating, “The stock is looking weak and may slip towards Rs 110 level. Immediate resistance will be at the Rs 135 zone.”
Despite trading below the 5-day, 10-, and 20-day SMAs, Zomato’s stock remains above the 30-day, 50-, 100-, 150-day, and 200-day SMAs. The 14-day RSI stands at 47.80, indicating a neutral stance.
Zomato’s current P/E ratio stands at 139.44, with a P/B value of 5.38. HSBC has suggested a ‘Buy’ call for Zomato with a target price of Rs 150, anticipating relatively muted business and stock performance in 2024.
