Shares of new-age companies have seen a strong rally since the low of June 4, the day of Lok Sabha election results, with companies like Zomato and Paytm topping the charts.
Zomato shares have risen nearly 80 per cent from a low of Rs 146.30 on June 4. In comparison, the NSE Nifty 50 index has gained 16 per cent from its low of Rs 21,281 on the same day.
Gains in food aggregator shares Zomato was credited with improved financial performanceFollowing the first-quarter earnings, analysts said that consistent growth delivery and strong profitability execution in Food Delivery and Quick Commerce (QC) would support the stock’s elevated valuations.
Among others, Paytm is up 60% and PB Fintech, the parent company of PolicyBazaar, is up 41%. Nykaa, Delhivery and CarTrade are up 21-28% each.
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Apart from this, hopes of a possible inclusion in the futures and options segment have kept these stocks on investors’ radar.
Against this backdrop, here’s how the main players in the New Age space look on the technical charts:
Zomato
Current Price: Rs 263
Downside risk: 19.8%
Support: Rs 252; Rs 247; Rs 232
Resistance: 280 rupees
Zomato stock is trading in an overbought zone on the long-term charts. Moreover, the stock is believed to be struggling to stay above the upper end of the Bollinger Bands on the weekly scale. Hence, these could be early signs of a likely price cooling down in the future.
As per the monthly chart, the bias for the stock is likely to remain positive as long as the stock manages to sustain above Rs 252. A breakout and sustained trade below the same can trigger a corrective move towards the 20-WMA (weekly moving average), a key level that the stock has consistently held at in times of volatility since April 2023. CLICK HERE TO VIEW GRAPHIC
The 20-day moving average is currently placed at Rs 211; interim support for the stock can be expected around Rs 247 and Rs 232 levels. Resistance on the upside is likely to be placed around Rs 280 levels.
Online payment
Current Price: Rs 571
Upside potential: 11.2%
Support: Rs 529; Rs 492; Rs 460
Resistance: Rs 628; Rs 635
Paytm stock has regained the 200-day daily moving average (DMA) after a gap of eight months. The stock is projected to register higher highs and higher lows on the daily scale since June. The daily chart suggests that the trend in favour of the stock is likely to remain favourable as long as it trades above Rs 529 (200-day DMA).
That said, the stock is now at the threshold of key resistance levels on the long-term charts. As per the charts, the 100-day moving average at Rs 628 and the upper trend line resistance on the monthly scale at Rs 635 could limit further upside for the stock for now.
On the other hand, in case the stock again falls below the 200-DMA, a drop to Rs 492 – Rs 460 seems likely. CLICK HERE TO VIEW GRAPHIC
PB (PolicyBazaar) Financial Technology
Current Price: Rs 1,680
Upside potential: 11.9%
Support: Rs 1,648; Rs 1,605
Resistance: Rs 1,750; Rs 1,824
The short-term bias for PolicyBazaar is likely to remain positive as long as the stock trades above Rs 1,648 levels; below which key support for the stock lies at Rs 1,605. On the upside, the stock seems headed towards Rs 1,880; with interim resistance expected around Rs 1,750 and Rs 1,824. CLICK HERE TO VIEW GRAPHIC
Delhivery
Current Price: Rs 436
Upside potential: 11.2%
Support: Rs 415; Rs 407
Resistance: Rs 450; Rs 455
Key momentum oscillators such as Slow Stochastic and MACD (Moving Average Convergence Divergence) on the weekly chart of Delhivery are showing positive crossovers. Therefore, the stock is likely to witness a pick-up in bullish momentum in the upcoming trading sessions.
The trend in favour of the stock is likely to remain bullish as long as it remains above Rs 415 (its 20-day moving average), below which support can be expected around Rs 407. On the upside, the stock is likely to test Rs 472 – Rs 485 levels. The stock may face some resistance around Rs 450 – Rs 450 levels. CLICK HERE TO VIEW GRAPHIC
Wank
Current Price: Rs 194
Upside potential: 12.4%
Support: Rs 190; Rs 182
Resistance: Rs 198; Rs 201
The price/moving average ratio is favorable for Nykaa, with the stock trading firmly above key moving averages and short-term moving averages located above long-term moving averages.
As such, the 20-DMA at Rs 190 acts as a first line of defence for Nykaa stock; below which support is seen for the stock at Rs 182. On the upside, the stock seems to be heading towards Rs 218; with interim resistance seen at Rs 198 and Rs 201 levels. CLICK HERE TO VIEW GRAPHIC
CarTrade Technology
Current Price: Rs 907
Downside risk: 16.7%
Support: Rs 990; Rs 840
Resistance: Rs 925; Rs 980
CarTrade shares have been trading in a wide range of Rs 760-925 for the past three months. The weekly chart shows a possible widening of the trading range to Rs 755-980. A decisive breakout of the trading range could determine the next trend of the stock.
For now, immediate resistance for the stock is seen at Rs 925; and support at Rs 880 and Rs 840 levels. CLICK HERE TO VIEW GRAPHIC
First published: August 20, 2024 | 14:31 IS
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