Amid volatility in the broader equity market, nine out of the 18 new-age tech stocks under Inc42’s coverage, excluding Yatra, declined this week
While EaseMyTrip emerged as the biggest loser, down 5.2%, Nazara Technologies, DroneAcharya, ideaForge, and Delhivery also fell
Eight new-age tech stocks, including MapmyIndia, RateGain, and Zomato, gained this week, with recently-listed Zaggle surging over 26%
Indian new-age tech stocks witnessed a mixed market performance this week as the broader equity market remained largely volatile due to global uncertainties.
Of the 17 new-age tech stocks under Inc42’s coverage, excluding Yatra which listed on the bourses on Friday, nine slumped this week in a range of 0.6% and over 5%.
While EaseMyTrip emerged as the biggest loser, down 5.2%, Nazara Technologies, DroneAcharya, ideaForge, and Delhivery also fell.
On the other hand, eight new-age tech stocks gained during the week. Zaggle, which listed on the bourses last week, saw its shares jump over 26% to emerge as the biggest winner this week.
Others including MapmyIndia, RateGain, Zomato, and Paytm gained in a range of 0.7% and over 18% this week.
Meanwhile, Yatra made a lacklustre debut on the exchanges this week. The traveltech major listed at INR 130 on the BSE, lower than its issue price of INR 142.
In the broader market, benchmark indices Nifty 50 and Sensex fell 0.18% and 0.27% to 19,638.30 and 65,828.41, respectively, this week. While the indices saw a downward trend in the week, they ended the month’s last session in the green. While Nifty 50 ended Friday’s session 0.59% higher, Sensex rose 0.49%.
Amol Athawale, vice president of technical research at Kotak Securities, said the markets remained subdued to negative over the past few sessions due to worries over likely rate hikes, selling by foreign institutional investors (FII), strengthening US dollar, rising US bond yields, and surging crude oil prices.
“… but India still provides some stability in an unpredictable market due to strong economic activity and hence our markets will continue to attract investors’ attention over the medium to long-term perspective,” he said.
Commenting on the week ahead, Pravesh Gour, senior technical analyst at Swastika Investmart, said the market will closely monitor the outcome of the RBI’s monetary policy committee (MPC) meeting, scheduled for October 4-6.
“Aside from that, market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices. Investments by FIIs and domestic institutional investors (DIIs) will also be monitored,” Gour added.
Now, let’s take a look at the performance of some of the new-age tech stocks this week.
The 18 new-age tech stocks currently under Inc42’s coverage ended the week with a total market capitalisation of $37.07 Bn as against 17 of them ending last week at $31.74 Bn.
Nazara Slumps Again
After gaining 4.8% last week, shares of Nazara Technologies declined 4.6% this week to emerge as the third biggest loser among the listed new-age tech stocks.
Nazara ended the week at INR 835.3 on the BSE.
Earlier this week, the company received a show cause notice from the Mumbai office of the Directorate of GST Intelligence (DGGI) for INR 2.84 Cr. Though Nazara shares gained slightly on Thursday, the overall volatility remained.
Ganesh Dongre, senior manager of technical research at Anand Rathi, said that the stock is expected to undergo more correction and reach INR 780-INR 790 zone. Once this level is reached, one can go long on the stock with a stop loss at around INR 740 zone, he said.
Dongre expects shares of Nazara to rally once again in the next 2-3 weeks, with a potential to reach around INR 900.
The gaming major’s shares have rallied significantly since mid-August on the back of its new fundraises.
EaseMyTrip Biggest Loser
In a complete reversal of its performance last week, shares of traveltech startup EaseMyTrip slumped 5.2% this week, becoming the biggest loser.
The stock was the biggest winner last week. This week, the stock ended the last session at INR 40.52 on the BSE.
During the week, the startup announced a collaboration with visa processing services provider DuDigital Global Limited to improve the visa and passport services experience.
Besides, EaseMyTrip also announced the opening of a new franchise store in Punjab. The company also held its annual general meeting post market close on Friday.
Anand Rathi’s Dongre said the stock is currently in the selling zone, hence, it’s advised to avoid buying this counter till it reaches around INR 35 level.
“Use a buy-on-dips strategy on this counter right now,” he said.
RateGain Announces New ESOP Allotment
On Monday (September 25), travel SaaS platform RateGain approved the allotment of 22,080 equity shares of face value of INR 1 each under RateGain Employees Stock Option Scheme–2015.
It also allotted 7,129 equity shares of face value of INR 1 each to the eligible employees who have exercised their Stock Appreciation Rights, under RateGain – Stock Appreciation Rights Scheme – 2022.
The startup said that following this, its paid-up equity share capital stood at INR 10.84 Cr.
RateGain shares gained in two straight sessions earlier this week, before falling slightly. However, the stock ended the week almost 4% higher at INR 593.2 on the BSE.
Overall, the stock gained 9.9% this week, becoming the second-biggest gainer.
The stock looks positive on the daily chart with possibilities of further rally in the coming weeks, said Dongre.
The target for the stock is at INR 630 and stop loss is at INR 550, he added.