Investor enthusiasm was also fueled after the company reported a Rs 13.64 crore profit in the first quarter ended June 2024, displaying a 152% YoY jump. The revenue from operations for the reporting quarter stood at Rs 1,746.11 crore, which was also up by 23% from Rs 1,421.82 crore reported in the corresponding quarter of the previous financial year.
βNykaa has been steadily recovering over the past year and is now gaining significant traction. Recently, it experienced a breakout from a triangle pattern on the weekly chart, surging towards the Rs 230 level,β said Ajit Mishra, SVP, Research at Religare Broking.
Mishra suggested that this upward momentum is likely to continue, with potential to reach Rs 250+ levels and advised traders to maintain a closing stop loss at Rs 190 for long positions.
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Nykaa’s price action had undergone a significant decline of over 70% since its highs made after its listing, followed by a transition into a broader consolidation phase. This phase indicated a potential loss of downside momentum.
βThe price action has risen above the stage 1 basing area, where a balance between buyers and sellers was established, contrasting with the prior dominance of sellers, leading to declines. The emergence of buyers willing to acquire the stock without demanding substantial price concessions is a favourable signal as it endeavours to advance from its base into a more dynamic stage,β said Kushal Gandhi, Technical Analyst at StoxBox.
Based on the above view, Gandhi recommends considering purchasing the stock within the Rs 213-208 range, targeting a price of Rs 256 while maintaining a stop loss at Rs 192.
Nykaaβs stock has been trading in an upward trending channel for more than a year from its all time low now, which it attempted to break in Wednesdayβs session, but the move was quickly sold into, which potentially signals that one might have to be cautious at these levels until momentum once again picks up.
βTo initiate a fresh long, one should wait for the Rs 217 level. One can go long at Rs 217 keeping a stop loss (SL) at Rs 209 and expect a target of Rs 235 in the medium term,β said Rahul Ghose, CEO of Hedged.in.
βAlternatively, one can also go long at the Rs 198 level if you see the stock heading downwards keeping SL at Rs 190 level,β Ghose added.
On Wednesday, the shares of Nykaa had rallied 19% to its fresh peak of Rs 228.50, marking its largest intraday gain for the company since November 2022. However, the stock closed flat at Rs 210.40 on BSE in Thursdayβs session.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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