Shares of online food aggregator Zomato settled higher on Monday, snapping their four-day losing run. The stock rose 1.26 per cent to settle at Rs 56 apiece on BSE. Technical analysts see strong support for the stock at Rs 45 level. They see Rs 75 as a good level, where traders can book profits.

On Monday, a total of 24.46 shares changed hands on BSE, which was lower than Zomato's two-week average volume of 34.20 shares. The turnover on the counter stood at Rs 13.73 crore. The food aggregator commanded a market capitalisation (m-cap) of Rs 47,889.77 crore at the close.

At today's closing price of Rs 56, the scrip was up 38 per cent from its 52-week low of 40.55 on July 27, 2022.

The stock traded below its 5-day, 20-, 50-, 100-and 200-day simple moving averages (SMAs). Zomato has an average target price of Rs 67, as per data publicly available with Trendlyne, suggesting an upside potential of 19.64 per cent. The stock's one-year beta stood at 1.67 per cent, indicating high volatility on the counter.

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Technical analysts said the Zomato stock could see rangebound trading between Rs 45 and Rs 75 levels, with Rs 45 being good support. Investors, they said, can look to accumulate the stock at this level for a target of Rs 75.

Osho Krishan, Senior Analyst - Technical & Derivative Research - at Angel One, said, "Zomato is in a secular downtrend and is hovering well below all its major SMA on the daily chart, indicating inherent weakness. Any fall below the recent swing low of Rs 53.20 could further disrupt the chart structure, and the stock might plunge toward the Rs 48.50 odd zone. On the contrary, the stock has a stiff resistance of the bearish gap placed around the Rs 59.55-59.80 zone, followed by Rs 62-64 odd levels. In the meantime, the stock is expected to hover in between the mentioned range until a decisive breakthrough happens on either side."

Ravi Singhal, CEO of GCL Securities, said, "Zomato is consolidating for a long time. The stock is in the range of Rs 45 to Rs 75." Investors can buy near support of Rs 45 and book profit around Rs 75 levels, Singhal added.

Ravi Singh, Vice-President and Head of Research at Share India, "The recent turmoil in Zomato's management is affecting the stock in a negative manner. However, the company has shown slight improvement in its September quarter financial numbers but many concerns still remain for Zomato. The stock may remain under selling pressure and may touch the levels of Rs 50 in near term."

Investors should exit the stock, he suggested.

AR Ramachandran from Tips2trades, said, " The levels of Rs 57-58.70 will continue to act as a strong resistance for Zomato on the daily chart. A daily close below the Rs 53.40 level could lead to a target of Rs 48 in the near term."

Q3 Expectations

JM Financial expects only 1 per cent QoQ growth in food delivery GOV (Gross order value) in the December quarter, as it factors in the adverse impact of inflationary pressures on discretionary spending, increase in dine-in consumption and discontinuation of Zomato Pro Plus loyalty programme.

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Meanwhile, Indian equity benchmarks rebounded today, halting their losing run of three straight sessions.

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Zomato shares at Rs 45 or Rs 75? What's next for the stock after recent fall - Business Today