Zomato shares drop by around 3%, beats five-day winning streak

Zomato shares: The counter’s 14-day relative strength index (RSI) got 64.31. A level under 30 is defined as oversold, while a value exceeding 70 is supposed to be overbought. 

Zomato shares have a price-to-earnings (P/E) ratio of 603.43 against a price-to-book (P/B) value of 3.39.

Shares of online food delivery app Zomato Ltd dropped on Monday, fracturing their five-day winning run. The stock sank 2.78 per cent lower at Rs 80.18 over its last close of Rs 82.47. It rose to a 52-week high price of Rs 85.25 on Friday last week. 

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At today’s closing price, it has earned 33.08 per cent in 2023 and 49.59 per cent in the previous year. Analysts said the firm’s latest revenues and international business restructuring have raised investor confidence.

On technical setup, reliance on the counter could be seen at about Rs 70-75 levels, while Zomato may find resistance in the Rs 85-90 ranges. One of the critics even suggested that the share may exceed the Rs 100 mark by 2023-end.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, stated, “The stock has given a price volume breakout above Rs 73-75 levels. The outlook on the stock continues to inspire confidence. As far as levels go, the stock will likely find support in the short term in the Rs 73-70 zone and strong resistance in the Rs 85-90 zones.”