Swiggy share price jumps 6% in a weak market; Bernstein expresses bullish views

Defying weak market sentiment, Swiggy share price jumped over 6 per cent in intraday trade on BSE on Thursday, January 9, looking set to snap its four-day losing run. Swiggy share price opened at ₹505.65 against its previous close of ₹490.65 and jumped as much as 6.12 per cent to the level of ₹520.70. Around 11:30 AM, the stock traded 4.22 per cent higher at ₹511.35 on the BSE. Equity benchmark Sensex was 0.50 per cent down at 77,760 at that time.

Swiggy shares gained traction after media reports suggested global financial firm Bernstein initiated coverage on the stock with an outperform view, pegging the target price of ₹635, implying a 25 per cent upside potential, while highlighting the stock’s reasonable valuation and scope for potential re-rating.

According to the reports, Bernstein considers Swiggy one of the winners in India’s convenience economy.

As the company has been focusing on faster order delivery, Bernstein believes Swiggy will benefit from the shift to super-fast delivery models.

While Bernstein expects a duopoly structure to sustain in the food-delivery segment, it believes food delivery gross order value (GOV) may grow at 21 per cent in FY25-27, according to media reports.

Should you buy Swiggy stock now?

While the stock appears to be an attractive bet for the long term due to the growth prospects of the company and the overall sector, some technical experts believe investors should wait for the stock to see a daily close above ₹522 before initiating a buy.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that at present, Swiggy stock has shown strength by taking support near its previous breakout zone, as highlighted in the chart. This indicates a positive technical setup, suggesting buyers are active at this level.

For further confirmation of upward momentum, it is crucial to wait for a decisive daily close above ₹522. Such a move would reinforce the breakout and signal a potential continuation of the rally, Patel said.

“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 the Indian bourses on November 13 last year after witnessing a healthy buying of its initial public offering (IPO).

Till January 8 close, the stock is up 26 per cent against its issue price of ₹390. The stock hit an all-time high of ₹617 on December 23 after hitting an all-time low of ₹390.70 on the listing day on November 13 last year.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.