Zomato Stock Price: Big Movers on D-St: What Should Divi’s Laboratories, Zomato, and Rupa Company Investors Do?
From a sector perspective, selling was seen in information technology, utilities, power and infrastructure stocks, while buying was seen in banks and financial services.
Stocks targeted included names such as Divi’s Laboratories which fell more than 6%, Zomato which rebounded and closed with gains of almost 14%, and
which has decreased by more than 16%.
Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors do with these stocks when the market resumes trading today:
Divi Laboratories: buy on dips
After hitting several lows around Rs 1,630 in March 2020, the price surged sharply to reach an all-time high of Rs 5,425 in October 2021.
“ Back to recommendation stories
Volumes were relatively higher during this tenure and the price made a top model superior and bottom superior.
At a higher level, the price came under some selling pressure as it retraced nearly 45% to bottom around Rs 3,650 odd levels.
During the current week, after facing the resistance of 20-WMA at Rs 4,301, the stock saw a strong sell-off of around 15%, and a further decline can be seen down to Rs 3 550 odd levels.
The sock has major support around Rs 3,500 below which Rs 3,350 can be seen. Once it holds and breaks above Rs 3,800, we can see further upside to Rs 4,200 to Rs 4,550 odd levels.
Therefore, we recommend buying at lows of around Rs 3,550 and further at lows of Rs 3,350 with a stop loss of Rs 3,150 and on the upside we can see odd levels of Rs 4,200 and Rs 4,550 over the next 10 to 12 months.
Zomato: buy on dips
In our previous view on
given in the first week of May we said that the stock might go down to an odd level of Rs 50 and we can see from the price chart that it hit a low of Rs 50.05 on May 10 .
From its all-time high, the price has corrected down to Rs 50 odd levels, creating a lower upper lower lower pattern.
Currently, the price is consolidating at a lower level as we can see a sideways movement within the odd level of Rs 50-60 for 10 days and once it breaks the range at a higher level, we can see a strong rally to rising up to Rs 67 odd. levels.
Volumes were comparatively higher during this period. The stock is currently trading above the 20-DMA, which is a good sign for further upside.
The stochastic oscillator is also moving in an upward trend. This whole parameter is showing signs of some rally up to odd levels of Rs 75-80 in the short to medium term.
Therefore, we recommend investors to buy the stock at the current level and dip further towards Rs 58 with a stop loss of Rs 52 at the close. We can see odd levels of Rs 75-80 on the upside.
Rupa Company: Avoid
From lows of Rs 100 in March 2020, the price moved in an upward trend to reach highs of Rs 550 in August 2021.
From September 2021 to date, the price is moving sideways as we can see the price taking support around an odd level of Rs 400 and facing resistance around Rs 550.
Volumes are also higher during this period. After the negative news from management, the stock saw a strong 20% sell-off and moved closer to its support level of Rs 400.
Once this level is broken, we can see more selling up to odd levels of Rs 350-320. As more selling pressure can be seen around this level, our view will be to wait and watch and not enter this level.
If it does not drop below the odd levels of Rs 390, then we can buy and once it breaks above the odd levels of Rs 490, we can see a maximum of odd levels of Rs 550.
Therefore, we recommend buying at lows of Rs 400 with a stop loss of Rs 350 on a closing basis and the upside levels will be Rs 490 to 550 for a medium to long term period.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)