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Zomato, the popular online food aggregator, experienced a rollercoaster day in the stock market, witnessing a significant rise followed by a sharp decline. Shares started the day by climbing 0.92 percent, reaching a new record high of Rs 286.50. However, this momentum quickly faded, and the stock lost all its gains throughout the session, dropping 4.68 percent from its peak and hitting a day-low of Rs 273.10. This volatility highlights the unpredictable nature of the stock market and emphasizes the need for investors to carefully consider their investment strategies.
Despite the recent dip, analysts remain largely optimistic about Zomato's long-term prospects. Sneha Poddar, VP of research, broking, and distribution at Motilal Oswal Financial Services, expressed a positive outlook, citing the company's growth driven by both its food-delivery business and Blinkit, its quick commerce platform. Poddar highlighted the stability of the food-delivery business and the anticipated profitability of Blinkit in the near future. Furthermore, Zomato's acquisition of Paytm's movie-ticketing business is expected to bolster its going-out platform, further expanding its reach and services.
Investors are advised to exercise caution and approach Zomato shares with a long-term perspective. Poddar suggested accumulating the stock at levels around Rs 260-270. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, echoed this sentiment, advising existing investors to hold onto their shares and suggesting that new investors wait for a further dip before entering the market. This cautious approach acknowledges the recent volatility and emphasizes the importance of timing in investment decisions. Technical analysts also provided insights into potential support and resistance levels for Zomato shares. Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, identified Rs 260-270 as a strong support zone, while a decisive breakthrough above Rs 295 would signal further upside potential. Similarly, Sebi-registered research analyst AR Ramachandran noted strong support at Rs 268-270 and suggested that a daily close above Rs 287 could lead to targets of Rs 305-345 in the near term.
The fluctuating performance of Zomato shares reflects the ongoing uncertainty surrounding the company's future. While analysts remain optimistic, investors must carefully consider the risks associated with stock market investments, particularly in volatile sectors like technology and online services. The recent dip highlights the importance of conducting thorough research and seeking professional financial advice before making any investment decisions. By adopting a balanced approach and considering both the potential upside and the inherent risks, investors can navigate the complexities of the stock market and make informed choices that align with their individual financial goals.
Source: Zomato shares slip 5% from fresh record highs; should you enter at current levels?