Zomato shares have been on a steady rise, hitting a record high of ₹286.50 per share in early trading on Friday. This marks the seventh consecutive session of gains for the stock. However, after touching its peak, Zomato shares dipped by over 2%. Despite the pullback, the stock has surged more than 7% in just one week and has gained over 50% in the past three months. With a clear technical breakout from the consolidation phase, analysts expect Zomato to continue its upward momentum in the medium term. This could present a promising opportunity to invest in stocks like Zomato for further growth.
Zomato has broken out of its consolidation zone, ranging between ₹280 and ₹249, marked by a decisive bullish candle on the weekly chart. This has reinforced the continuation of the medium-term uptrend. Analysts note that Zomato shares are forming a pattern of higher highs and lows while remaining above a medium-term upward-sloping trendline. This signals a sustained uptrend in the stock, making it an attractive option for those looking to invest in stocks. The stock is also holding above the 23% Fibonacci retracement level from the rally between ₹146 and ₹279, with key support forming around ₹249.
The weekly Relative Strength Index (RSI) has crossed above its reference line, generating a clear buy signal for Zomato. Axis Securities highlights that this technical breakout, combined with the RSI indicator, suggests that Zomato's medium-term uptrend will likely continue. The brokerage firm has set a target price range of ₹314 to ₹325 for the stock, predicting potential gains of 14% to 18%. For those looking to invest in stocks, Zomato remains a top pick within the current price range of ₹278 to ₹272. However, a trend reversal could occur if the stock falls below ₹256.
Foreign brokerage firm Bernstein has maintained its 'Outperform' rating on Zomato, raising its target price from ₹275 to ₹330 per share. This implies a potential upside of over 16% from the previous day's closing price. Bernstein's positive outlook on Zomato stems from the company's growing role in the quick commerce sector. The firm believes that Zomato is positioning itself for long-term growth and market leadership, focusing on expanding its presence rather than short-term profitability. For investors looking to invest in stocks, Zomato's emphasis on long-term growth makes it an appealing choice.
Zomato's stock has provided a multi-bagger return of 125% year-to-date and has gained more than 183% over the past year. The company's consistent growth, both in its core business and in the emerging quick commerce sector, continues to drive investor confidence. As of 11:25 am on Friday, Zomato shares were trading at ₹277.90 per share, 2.11% lower on the BSE. Despite this slight dip, analysts remain optimistic about the stock's medium-term prospects, making it an ideal option for those looking to invest in stocks with growth potential.
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