Zomato Share Price Analysis: Is the Food Delivery Giant Still Delivering Value?

Introduction

Zomato, the food delivery major, has seen a lackluster movement in its share price recently. Currently trading at Rs 265.4, the share price is down by 0.55% today but remains a strong performer year-to-date (YTD). Let’s dive deeper into its performance metrics and technical indicators.

Recent Performance

The share price has experienced a significant 15% jump from the swing low of Rs 239.45 earlier this month. However, it remains 9% below its 52-week high of Rs 298.25, which was recorded on September 23, 2024. Despite this, Zomato’s share price has shown resilience by trading above its 20-day moving average (DMA) and 200-DMA, although it hovers around the 50-DMA.

YTD and Monthly Growth

Zomato has delivered stellar performance in 2024, with its share price surging 115%, making it a multibagger stock. For November, the stock has already risen by 10%, showcasing investor confidence.

Technical Indicators

Daily Chart

• RSI (14-period): Above 50, indicating positive momentum.
• MACD: The line is above the signal and zero lines, reinforcing bullish momentum.

Weekly Chart

• The stock trades above its 20-week simple moving average.
• RSI is strong at over 60, signaling continued upward strength.

Trend Strength

• ADX (Average Directional Index): At 41.63, reflecting strong trend strength.
• DMI (Directional Movement Index): The +DMI is above 26, indicating a bullish trend.

Support and Resistance Levels

For intraday trading:

• Support: Rs 262 is expected to act as a robust support level.
• Resistance: Rs 271 is likely to act as an immediate resistance.

Conclusion

Zomato’s share price has demonstrated remarkable resilience and growth in 2024, with technical indicators suggesting continued strength. While it trades flat currently, its position above key moving averages and a strong ADX reflect a solid trend. Investors can watch Rs 262 as a critical support level and Rs 271 as immediate resistance for short-term movement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.