News

Published: October 12, 2023
Updated: October 12, 2023

Zomato Share Price Skyrockets to New 52-Week High: Experts Predict More Upside

Zomato's stock price has been on a remarkable upward trajectory, hitting a new 52-week high of ₹109.15 apiece on the National Stock Exchange (NSE). This surge marks a significant turnaround for the new age business, and experts believe there may be further gains in store for investors.

Zomato's Uptrend:

After reaching a low of ₹44.35 apiece on NSE in February 2023, Zomato's stock has been on a continuous uptrend, with regular occurrences of reaching new 52-week highs. The latest surge has seen the stock's value increase by nearly 150% in the past eight months.

Potential for Further Gains:

Stock market experts are optimistic about Zomato's future, suggesting that the stock, currently trading in the ₹96 to ₹118 range, may have room for more growth. They anticipate Zomato's share price could climb to ₹118 apiece in the near term.

The Profitability of New Age Businesses:

One of the key factors contributing to the rise of Zomato's share price is the profitability of new age businesses. Experts believe that Zomato was available at a discounted price and entered a bullish trend after breaking through the ₹76 and ₹98 price levels. They consider Zomato shares an ideal "buy on dips" option in the stock market.

Reasons Behind Zomato's Soaring Share Price:

Experts attribute the surge in Zomato's share price to the improved profitability of new age businesses. He highlights that Zomato, as part of this segment, has benefitted from this positive trend. However, he emphasises that Zomato's performance in Q2FY24 will be a crucial factor in determining the stock's future.

Zomato's Target and Trading Range:

Investors are advised to consider buying Zomato shares on dips. He notes that the stock has shown consistent breakouts at ₹76 and ₹98 levels, remaining in an uptrend after surpassing ₹76 apiece. Investors can hold the stock with a near-term target of ₹118, as it currently trades in the ₹96 to ₹118 range.

Safety Measures:

For investors holding Zomato shares, maintaining a trailing stop loss at ₹95 is recommended. Fresh buying is encouraged around ₹100 for the ₹118 apiece target, with the caution to maintain a stop loss at ₹95 when initiating new positions in Zomato shares.

Zomato's impressive climb to a new 52-week high reflects the strength of new age businesses in the stock market. With the potential for further growth and profitability in this segment, investors can consider Zomato shares as an attractive opportunity, but prudent risk management remains essential to navigate the market effectively.