Stock market today: Ola Electric’s share price witnessed strong buying after trading flat on the Indian stock exchange during Friday’s trade. Ola Electric Mobility’s share price was trading at ₹76 per piece. However, after the unchanged listing, Ola Electric shares attracted a lot of buying interest from the bulls on Dalal Street, resulting in a rise in the trading volume of the newly listed stock from 6 crore to over 34 crore within an hour of its debut. Ola Electric share price continued its upward move and hit an intraday high of ₹90.88 per share on the NSE, representing a gain of about 19.50 percent over the upper price band of Ola Electric’s IPO price.
According to stock market experts, the trading volume of Ola Electric shares has taken a decisive jump, indicating strong enthusiasm among institutional investors. So, the rise in the price of Ola Electric share could continue for some time as institutional investors who are buying after the listing will not sell in the near future. Hence, the downside movement of the stock is also limited. They advised Ola Electric shareholders to hold the stock for two to three years as the stock can generate wealth in the stock portfolio. They advised Ola Electric shareholders to hold the stock and keep a stop loss at ₹75.
Price forecast for Ola Electric
Talking about Ola Electric’s share price outlook, Prashanth Tapse, Senior VP — Research at Mehta Equities said, “Though demand was way below street expectations, OLA Electric’s share price performing well above expectations can be attributed to the sentiment in the Indian market. Post listing, the near-term view remains unchanged due to weak financials and risk of negative cash flows in the future and allotted investors should be aware of the risk before holding the stock as it could negatively impact the consolidated financial position post listing. Considering all factors, we advise only risk-averse investors to continue holding the stock with a minimum holding period of 2-3 years.”
Arun Kejriwal, Founder, Kejriwal Research and Investment Services, advises Ola Electric shareholders to hold the shares for medium to long term. He said, “At the time of listing, Ola Electric shares had a trading volume of around six crore, which increased to over 34 crore within an hour of listing. This means that institutional buying has taken place at an alarming level and hence the chances of Ola Electric shares falling from the higher levels are limited. Hence, Ola Electric shareholders are advised to hold the shares and keep the stop loss at ₹75.”
Commenting on the suggestion for new investors, Arun Kejriwal said, “New investors can start accumulating Ola Electric shares at the current levels and continue to accumulate after any major fall in the newly listed stock. They are also advised to keep stop loss at ₹75 each.”
Disclaimer: The views and recommendations above are those of individual analysts, experts and brokerage firms and not of Mint. We advise investors to seek advice from certified experts before making any investment decisions.
