Nykaa shares rally 20% in 1 month. Is your portfolio ready for a makeover?
FSN E-Commerce Ventures, the parent company of the beauty brand Nykaa, have recently seen a sharp rally as the stock surged 20% in one month, of which 11% surge took place in just the last week.
Investor enthusiasm was also fueled after the company reported a Rs 13.64 crore profit in the first quarter ended June 2024, displaying a 152% YoY jump. The revenue from operations for the reporting quarter stood at Rs 1,746.11 crore, which was also up by 23% from Rs 1,421.82 crore reported in the corresponding quarter of the previous financial year.
“Nykaa has been steadily recovering over the past year and is now gaining significant traction. Recently, it experienced a breakout from a triangle pattern on the weekly chart, surging towards the Rs 230 level,” said Ajit Mishra, SVP, Research at Religare Broking.
Mishra suggested that this upward momentum is likely to continue, with potential to reach Rs 250+ levels and advised traders to maintain a closing stop loss at Rs 190 for long positions.
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Nykaa's price action had undergone a significant decline of over 70% since its highs made after its listing, followed by a transition into a broader consolidation phase. This phase indicated a potential loss of downside momentum.
“The price action has risen above the stage 1 basing area, where a balance between buyers and sellers was established, contrasting with the prior dominance of sellers, leading to declines. The emergence
