Shares of FSN E-Commerce Ventures Ltd, parent of Nykaa, continued to rise in Wednesday’s trade, extending their rebound for the second straight session. The stock jumped 9.68 per cent to hit an intraday high of Rs 138.85 over its previous close of Rs 126.60. It finally settled 7.86 per cent higher at Rs 136.55. Considering today’s closing, the stock has climbed 13.32 per cent from its one-year low of Rs 120.50, hit on March 31, 2023. However, the scrip has plunged 56.77 per cent from its 52-week high of Rs 315.86, a level seen on April 11 last year.
The stock was previously in a downward move amid top-level exits. It started gaining momentum in the previous session.
A total of 19.15 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 9.54 lakh shares. Turnover on the counter stood at Rs 25.92 crore, commanding a market capitalisation (m-cap) of Rs 38,950.16 crore.
Analysts largely were mixed on the counter. Support on the counter could be seen near Rs 120, followed by Rs 130 levels.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “On the daily charts, the stock is already in the oversold zone. Currently, it has formed an inverse hammer pattern which is bullish in nature. Also, the MACD (Moving Average Convergence/Divergence) indicator showed an upward reversal for this stock. So, traders can buy this stock with a stop loss of Rs 120-122 for the target price of Rs 148-150.”
Amol Athawale, Deputy Vice-President – Technical Research at Kotak Securities, said, “After a short-term correction, the stock eventually took support near Rs 120 and bounced back sharply. On daily and weekly charts, the stock has formed a long bullish candle which supports a further uptrend from the current levels. For short-term traders, Rs 130 would now be the key support zone. If the stock succeeds to trade above the same then it could move to Rs 144-148. On the flip side, below Rs 130 level would be vulnerable.
AR Ramachandran from Tips2trades said, “Nykaa looks bullish on the daily charts and a close above resistance of Rs 134.50 could lead to targets of Rs 145-158 in the near term. Support will be at Rs 121.60.”
On the flip side, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, stayed ‘negative’ on the counter for now.
The stock was last seen trading higher than the 5-day moving averages but lower than the 20-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 49.45. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 412.90.
The scrip has an average target price of Rs 145, as per Trendlyne, suggesting a potential upside of 5.17 per cent. It has a one-year beta of 0.84, indicating low volatility.
Meanwhile, Indian equity benchmarks rose sharply today, extending their winning run for the fourth straight session in this holiday-shortened week. The 30-share benchmark BSE Sensex pack settled 583 points or 0.99 per cent higher at 59,689, while the broader NSE Nifty index moved 159 points or 0.91 per cent to close at 17,557.
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