There is a continuous decline in the stock of food delivery company Zomato. The company’s shares have been falling continuously for the last six trading days.
Shares of Zomato registered a big fall on Tuesday as well. The stock today closed 4.93 per cent down at Rs 50.15 on the BSE. Zomato shares have fallen 10.45 percent in the last 6 days.
Decline may continue
The turnover at the counter stood at Rs 40.14 crore with a market cap (m-cap) of Rs 42,887 crore. The analyst said the technical charts are indicating that the weakness on the counter is not over yet. That is, the decline in stocks may continue.
What did the brokerage say?
Analyst at Angel One said, “Zomato is in a downtrend and is well below all its major SMAs (Simple Moving Averages) on the daily chart, indicating weakness. Also, the stock breakdown below the previous swing low of Rs 53.20.” Whereas, the stock is facing a strong resistance near Rs 56 levels.
Stoploss updated to 39 Rs
Anand Rathi shares, “Based on the daily RSI (Relative Strength Index) and daily MACD (Moving Average Convergence/Divergence), it looks like the downtrend is not over yet. Also Zomato is trading on its 12-, 26- and 50- -Trading well below DEMA (Double Exponential Moving Average) which shows downside in coming sessions. Keeping stop loss at Rs 39 only Rs 45-46 for target price of Rs 55 says expert Purchases can be made at the level of Rs.