Zomato Steals The Spotlight As New-Age Tech Stocks Rally This Week

Zomato Steals The Spotlight As New-Age Tech Stocks Rally This Week

SUMMARY

Nine out of the 14 new-age tech stocks under Inc42’s coverage gained this week, rising in the range of 1% to over 4%

RateGain was the biggest loser this week, plunging 7.4% on the BSE. IndiaMart InterMESH, Paytm, Nykaa, PB Fintech were the others which ended in the red

Reversing last week’s decline, benchmark indices Sensex and Nifty50 gained 1.2% and 1.6%, respectively, this week

New-age tech stocks witnessed some recovery this week as the broader Indian equity market remained upbeat due to a decent March quarter earnings season.Commenting on the weekly performance, Vinod Nair, head of research at Geojit Financial Services, said that the domestic market was influenced by global cues, including concerns surrounding the ongoing US debt ceiling negotiations, the German recession, and hawkish comments from US Fed officials. For instance, ICICI Securities upgraded its rating on Nykaa to ‘buy’ from ‘add’ but noted that the company chasing growth at elevated levels, which could be dilutive of gross margin, and difficulty in fashion business achieving success, given higher competition in the category, remain the key risks to its thesis.“The immediate hurdle for the stock is its 50-day simple moving average (SMA), which is INR 130 currently. If the stock succeeds to close above this level, then we can expect a sharp pullback rally to INR 135-INR 140,” Athawale said.Kotak Securities’ Athawale noted that the stock is consolidating between INR 650 and INR 590 after a strong rally. “INR 590 is the strong support zone for the stock. If it sustains above that, then the immediate upside would be INR 650 and INR 670. The texture of the stock is positive but might take some time for the next rally,” he said.Kotak Securities’ Athawale said that Zomato is consistently trading above the 200-day SMA, which is a positive sign for the stock. After a strong rally, the stock is forming higher-high and higher-low series, which is also a big advantage for the stock, he believes.

Nine out of the 14 new-age tech stocks under Inc42’s coverage gained this week, rising in the range of 1% to over 4%. Nazara Technologies emerged as the biggest winner, surging 4.4%, followed by Zomato, which rose 4.3% on the BSE.

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