Nykaa, the popular beauty and fashion brand, has seen its shares rise by 20% in just one month, with an 11% increase in the last week alone. This surge comes after its parent company, FSN E-Commerce Ventures, reported a profit of ₹13.64 crore for the first quarter of June 2024, which is a 152% jump compared to the previous year. The company’s revenue also grew by 23%, reaching ₹1,746.11 crore.
Ajit Mishra, SVP of Research at Religare Broking, noted that Nykaa has been steadily recovering over the past year. Recently, the stock broke out of a triangle pattern on the weekly chart, climbing to around ₹230. Mishra believes this upward trend may continue, potentially reaching ₹250 or higher, and advises traders to keep a stop loss at ₹190 for long positions.
Nykaa’s shares had previously dropped over 70% from their peak after listing, entering a consolidation phase where the downward momentum slowed. Kushal Gandhi, a Technical Analyst at StoxBox, suggests that the recent price action indicates a shift, with buyers now showing more interest. He recommends buying the stock in the ₹213-208 range, with a target of ₹256 and a stop loss at ₹192.
Nykaa’s stock has been on an upward trend for over a year since hitting its all-time low. Although it attempted to break out on Wednesday, the move was quickly reversed, suggesting caution may be needed until momentum picks up again. Rahul Ghose, CEO of Hedged.in, advises waiting for the ₹217 level to initiate a fresh long position, with a stop loss at ₹209 and a target of ₹235. Alternatively, if the stock dips to ₹198, he suggests buying with a stop loss at ₹190.
On Wednesday, Nykaa shares hit a new peak of ₹228.50, marking their largest intraday gain since November 2022, but they closed flat at ₹210.40 on Thursday.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
