73% down and still no bottom! Will Ola Electric break Rs 38 and slide to Rs 31?

Time of India

5 days ago

Ola Electric shares
have plunged over 73% from their all-time high of Rs 157.5 in August 2024. On June 26, the stock hit a fresh low of Rs 43.02, with technical indicators suggesting further downside unless key support levels hold.
According to Amit Trivedi, Vice President and Technical Analyst at YES SECURITIES, the stock continues to trend lower without any meaningful recovery. 'It is down nearly 50% so far in 2025 and still lacks stability. Due to oversold conditions on short-term charts, a minor recovery is possible; however, a major upside is unlikely. Eventually, a further decline towards Rs 39 is expected,' he said.
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The selling pressure has been persistent, with Ola Electric currently trading below key moving averages. Mandar Bhojane, Equity Research Analyst at Choice Equity Broking, noted, 'The stock faced strong resistance near Rs 55 and has slipped below the crucial Rs 45 support level, indicating growing weakness. It's trading below its 20-day, 50-day, and 200-day EMAs, and the RSI has dropped to 28.87 — firmly in the oversold zone.'
Bhojane sees the Rs 40–38 range as a crucial support band aligned with key Fibonacci levels. A breakdown below this could open the gates for a slide to Rs 35–31. On the upside, the stock would need to decisively break above Rs 45.30–47.87 for any sustained recovery.
Adding to the negative sentiment, Kunal Kamble, Senior Technical Research Analyst at Bonanza, pointed out that Ola Electric recently broke down from a descending triangle pattern—a bearish formation. 'The stock saw two sessions of sharp selling, but the aggression has eased in the last few sessions, with muted volumes. This indicates a temporary pause or consolidation. The RSI is flattening in the oversold zone, suggesting a loss of momentum,' he explained.
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However, Kamble cautioned against initiating fresh short positions for now, suggesting that any bounce could be a selling opportunity given the broader bearish structure. He pegs immediate support between Rs 42.40 and Rs 38.90, with resistance near Rs 45.27–46.22.
Block Deals, Earnings, and Sentiment Pressure
While technicals remain the focus, recent corporate and social developments have also weighed on investor sentiment.
On June 25, 0.8% of the company's equity changed hands via block deals. Just weeks earlier, Hyundai Motor Company reportedly sold shares worth Rs 731 crore in a bulk deal, offloading 3.23% of the company's equity at Rs 51.40 per share—a move interpreted by some as a sign of waning confidence from a strategic investor.
The stock's fall also follows weak Q4 FY25 results. Ola Electric reported a net loss of Rs 870 crore, more than double the Rs 416 crore loss a year ago. Revenue fell 62% year-on-year to Rs 611 crore as deliveries slumped to 51,375 units. Consolidated EBITDA margin dropped to -101.4%, though gross margins improved slightly due to higher sales of Gen-3 vehicles.
Sentiment further worsened after a public spat on social media between CEO Bhavish Aggarwal and comedian Kunal Kamra, with the latter highlighting service complaints from customers. The incident drew criticism toward Aggarwal's response, adding to the company's image woes.
What's Next for Traders?
With the stock now hanging around critical support, traders are watching the Rs 38 level closely. A hold at this level could lead to a short-term bounce. But if it breaks decisively, analysts warn that Ola Electric may slide further to the Rs 35–31 zone.
Until signs of a confirmed reversal emerge, analysts suggest caution. The broader trend remains bearish—for now, the bulls remain on the back foot.
(
Disclaimer
: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)