Zomato shares rally 8% to cross Rs 100 mark, hit 52-week high
Zomato rallied 8% and crossed the Rs 100 mark in Monday's trade on BSE. The stock has also hit a new 52-week high at Rs 102.8 in Monday's trade.Zomato shares saw a jump after the firm turned profitable in Q1 FY24. Zomato reported a consolidated net profit of Rs 2 crore for the quarter ended June 2023 against a loss of Rs 186 crore in the corresponding quarter of the last financial year.
The company also reported a loss of Rs 189 crore in the quarter ended March. Meanwhile, the revenue from operations for the reporting quarter stood at Rs 2,416 crore, which was up nearly 71% YoY against Rs 1,414 crore reported by the company in the year-ago period. Gaurav Bissa, VP at InCred Equities, said, «Zomato has seen a very strong upmove from 58 levels when it triggered a buy signal in the Ichimoku setup.
The stock has been forming higher highs and higher lows on the daily charts since Jan 2023 implying short-term trend reversal.» «Investors are advised to buy the stock on declines towards 80 for a target price of 120-140 whereas existing shareholders can use 75 as trailing stop-loss,» Bissa said. Meanwhile, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, «The counter is bottoming out and has also witnessed a breakout of an inverse head and shoulders formation pattern on the weekly chart. It has confirmed its breakout above Rs 90.
The overall structure also looks lucrative for long-term investors as it trades above all-important moving averages.» «MACD supports the current strength, whereas the momentum indicator RSI is also positively poised. On the upside, Rs 100 is the psychological resistance level; above this, we can expect a rally towards Rs 114. On the downside, Rs 87 is an important support level during
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