Zomato zooms over 7%! Is the turnaround on cards?
Strong buying interest at lower levels has led to resurgence of the stock as it zooms over 7% with heavier volumes.
Zomato Limited (Zomato) is an fintech company that primarily operates as an Internet portal providing food delivering services which also includes details of menus, contacts, discount offers, and quality of food. It is a growth stock having a market capitalisation of about Rs 62250 crores.
The stock of ZOMATO has surged over a massive 7% today and has gained strong bullish momentum. On the technical chart, the stock has formed a strong bullish candle with its open nearly equal to day’s low and continues to trade near day’s high. With today’s strong price action, the stock has surged over 20-DMA and 50-DMA and has crossed above its short term resistance of Rs 85.50. The stock was beaten down lately and has lost about 35% of its value since its prior swing high. However, strong buying interest at lower levels has led to resurgence of the stock as it zooms over 7% with heavier volumes.
The 14-period daily RSI has jumped above its prior swing high and is above 50. Thus, it shows that the stock is gaining strength. Moreover, the MACD line continues to be above its signal line. The On Balance Volume (OBV) indicates slight improvement in strength from volume’s point of view. Moreover, the Elder Impulse system has signalled a fresh buy in the stock.
The YTD performance of the stock has been terrible, having lost about 35% of its value during the period. However, a favorable risk-to-reward ratio appears here for the traders. The stock is showing sign of improvement and it is expected that the stock might not see further fall in times to come. Moreover, it has an immense potential to trade higher In coming days. This fintech stock has been beaten down lately but provides a good opportunity for swing trading. Traders can expect good gains for this stock and have a risk-reward ratio in their favour.
Keywords: Zomato, growth stock, 5paisa, trading stock, largecap stock, trending stock, buzzing stock, technical analysis
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