2 April 2024 – FSN E-Commerce Ventures Ltd, the parent company of Nykaa, continues its upward trajectory for the third consecutive session, offering potential opportunities for investors. However, despite recent gains, the stock has retreated 15% from its one-year high. As market analysts weigh in, investors are left to ponder whether the current levels present an opportunity for accumulation.
Nykaa’s parent company, FSN E-Commerce Ventures Ltd, witnessed a notable 3.74% surge in its stock price, reaching a day high of Rs 170.45 in Friday’s trading session. Despite this positive momentum, the stock has experienced a 14.51% decline from its 52-week peak of Rs 195.40, prompting investors to assess its investment potential.
Trading activity surged on the Bombay Stock Exchange (BSE), with approximately 2.23 lakh shares changing hands, surpassing the two-week average volume of 1.85 lakh shares. The turnover on the counter amounted to Rs 3.75 crore, reflecting a market capitalization of Rs 47,737.80 crore.
Technical analysts highlight crucial support and resistance levels for Nykaa’s stock, suggesting that support lies at Rs 160, while a decisive breach above the immediate resistance zone of Rs 170 could signal further upside potential. Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, predicts a trading range between Rs 165 and Rs 185 over the next month.
Meanwhile, Vaishali Parekh, Vice-President – Technical Research at Prabhudas Lilladher, remains optimistic about Nykaa’s prospects despite the recent correction. Parekh recommends buying the stock with a target price of Rs 195, emphasizing the importance of maintaining a strict stop loss at Rs 158 to manage risk.
