Swiggy’s share price soared more than 6% in intraday trade on the BSE on Thursday, January 9, appearing set to end a four-day losing streak. Swiggy’s share price increased by 6.12% to ₹520.70 after opening at ₹505.65, up from the previous close of ₹490.65. Around 11:30 AM, the stock traded 4.22% higher at ₹511.35 on the BSE. The equity benchmark Sensex was 0.50 per cent lower at 77,760 at the moment.
Bernstein initiated coverage of Swiggy with an outperform rating, targeting a target price of ₹635, implying a 25% upside potential and highlighting the stock’s reasonable valuation and potential for re-rating.
According to sources, Bernstein believes Swiggy is one of the winners in India’s convenience economy.
Bernstein believes Swiggy will profit from the change to super-fast delivery models, given the company’s focus on speedier order delivery.
While Bernstein expects a duopoly structure to persist in the food-delivery industry, it forecasts food delivery gross order value will expand by 21% in FY25-27, according to media sources.
Although the stock appears to be an intriguing long-term investment due to the company’s and the broader sector’s development prospects, some technical gurus suggest investors should wait for a daily close over ₹522 before commencing a buy.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share & Stock Brokers, noted that Swiggy’s stock is currently showing strength by taking support near its previous breakout zone, as indicated in the chart. This implies a favourable technical setup, implying that buyers are active at this level.
To confirm upward momentum, wait for a daily close over ₹522. Patel believes that such a move would reinforce the breakthrough and imply a likely continuation of the rise.
“The MACD indicator has given a positive crossover, which is a bullish signal, indicating increasing momentum. Once the stock achieves a close above ₹522, the positive MACD crossover could further accelerate the stock’s upward movement. Traders should monitor these levels closely before taking any action to ensure a more reliable entry,” said Patel.
Swiggy: Share price trend
Swiggy shares debuted on Indian stock exchanges on November 13 last year, following strong demand for its first public offering.
As of January 8, the stock is up 26% compared to its issue price of ₹390. The stock reached an all-time high of ₹617 on December 23, up from a low of ₹390.70 on the listing day on November 13 last year.
