Nykaa share price rebounds from 52-week lows. Should you buy now?

Market


Nykaa share price: After hitting 52-week low of 162.50 on NSE on Thursday session, shares of Fsn E-Commerce Ventures Ltd bounced back strongly in early morning deals on Friday. Nykaa share price today opened upside and went on to hit intraday high of 224.45 apiece on NSE, near 19 per cent higher from its Thursday close price of 188.25 per share.

However, stock market experts are still not impressed by this rebound in Nykaa stocks as they believe that stock is in base building mode after end of one year lock-in for anchor investors. They advised fresh investors to look at other stocks whereas Nykaa shareholders can exit on bounce.

Speaking on the reason for rise in Nykaa share price, Ravi Singhal, CEO at GCL Securities said, “After the end of one year lock-in for anchor investors of the company, market is in belief that big ticket sellers are gone and now the stock is trading at its lowest levels. This feeling got further fueled after buying of fresh stakes by FIIs like Norway’s Norges Bank on account of Government Petroleum Fund and Aberdeen Standard Asia Focus. However, the stock is still in base building mode and one should wait for the stock to phase out from its base building moves.”

Speaking on Nyka share price outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, “The stock has formed a piercing line candlestick pattern as well as a double bottom formation on the daily chart, which is confirming the bottom formation of the stock. It is trading above its all-important moving averages with higher highs and higher lows. On the upside, 240 is the immediate horizontal resistance; above this, we can expect 280+ levels in the near term. On the downside, a cluster of moving averages forms the base at around 185.”

Sumeet Bagadia, Executive Director at Choice Broking said, “Stock looking weak on chart pattern as it is facing strong hurdle at 230 to 240 zone. It is currently trading in a range of 180 to 240 zone where 180 to 190 is strong support zone for the fashion stock. My advice to fresh investors is to avoid taking any fresh position in the counter at current levels and those who took positions in the stock at lower levels should book profit in today’s rise.”

Nykaa bonus shares 2022

Nykaa shares are one of the bonus stocks today as its bonus share record date is 11th November 2022. Last month, Nykaa had announced bonus shares in 5:1 ratio and fixing record date on 3rd November 2022. But later on, the company revised its bonus share record date to 11th November 2022. Its one year lock-in period for anchor investors ended on 10th November 2022, the day when stock traded ex-bonus on Indian bourses.

 

FIIs buying stake in Nykaa

In a bulk deal executed on 10th November 2022, Norway’s Norges Bank on account of Government Petroleum Fund bought 3,981,350 Nykaa shares paying 173.35 apiece. Aberdeen Standard Asia Focus PLC too bought 4,272,334 Nykaa shares at 173.18 apiece on Thursday.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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