Why Zomato share price is nosediving today — explained

According to stock market experts, Zomato shares are falling today as Invesco has cut down Swiggy’s market valuations from $8.2 billion to $5.5 billion. They said that Swiggy is major competitor of Zomato and dip is valuations of Swiggy is working as short term negative trigger for the stock as market believes that Invesco’s valuation rule applies on Zomato as well. However, they said that the reason has no connect with Zomato and long term investors should take this dip as buying opportunity for medium to long term.

Invesco Swiggy valuation in focus

Speaking on why Zomato share price is nosediving today, Ravi Singhal, CEO at GCL Broking said, “Recently, Invesco has cut down valuations of Swiggy from $8.2 billion to $5.5 billion. As Invesco’s market valuation methodology applies on Zomato as well, the market has gone negative on Zomato as well.”

On pivot levels in regard to Zomato shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Zomato share price is currently in ₹58 to ₹70 range and it may go up to ₹52 apiece levels, if this ₹58 support is broken.”

Advising ‘buy on dips’ strategy to those who believe in bottom fishing, Ravi Singhal of GCL Broking said, “From fundamental perspective, Zomato is expected to come out of the base building mode and the stock may give sharp upside move in next one to two quarters. So, it’s time for medium to long term investors to start accumulating Zomato shares for medium to long term time horizon.”

Sumeet Bagadia advised positional investors to wait for some time and the stock is looking weak on chart pattern. He said that ideal buying zone for the stock would be close to its next support and advised investors to wait for more fall.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.