Shares of Nykaa’s parent FSN E-Commerce Ventures declined on Monday, extending their losing run for the sixth straight session. The stock dropped 4.97 per cent to hit an intraday low — also its adjusted 52-week low — of Rs 159.70 compared to the previous close of Rs 168.05. It eventually settled 2.86 per cent lower at Rs 163.25 on BSE. Technical charts hinted at a “secular downtrend” as the counter looked ‘weak’.
A total of 10.16 lakh shares changed hands on BSE, amounting to a turnover of Rs 16.50 crore. The lender’s market capitalisation or m-cap stood at Rs 46,498.10 crore.
At today’s closing level of Rs 163.25, Nykaa has declined 55.17 per cent compared to its adjusted one-year high of Rs 364.16, hit in December, 2021. (It must be noted that the share prices are adjusted after bonus issuance in November this year.)
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The stock has slipped 5.73 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has dropped 52.72 per cent.
Analysts largely remained bearish on the counter, given the current selling pressure. One analyst felt that the stock looked “sell on rise till it remains below Rs 180,” while another suggested a “pull back above Rs 169-levels.” One more analyst observed that the “negative view remains intact on the counter.”
Rupak De, Senior Technical analyst at LKP Securities, said, “The stock has been under selling pressure for the last few days, taking the stock below the previous trough of Rs 162.50, suggesting further weakening in demand. The stock looks a sell on rise till it remains below Rs 180, with resistance zone pegged at Rs 170-180. A decisive move above Rs 180 may induce a bullish reversal in the stock price.”
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Nykaa is in a secular downtrend with no sign of respite. Technically, the stock is looking very weak as it hovers well below all its major moving averages on all time frames. And until we witness any massive trend reversal, the negative view remains intact on the counter.
Anand James, Chief Market Strategist at Geojit Financial Services, said, “Today’s plunge to a new low has evoked fears of a extension of the bear run, that can even extend to Rs 60. But oscillators are yet to follow through with the present down break, hinting at the prospects of a reversal.”
In the upside play, James said, there should be a pull back above Rs 169.
A R Ramachandran from Tips2trades, said, “After a decent recovery from the lows, Nykaa stock price again finds itself at new lows today. A daily close below Rs 162 could pave the way for Rs 136 in the near term.”
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Strong resistance would be seen at Rs 184, Ramachandran further stated.
