DAILY PREDICTION

ZOMATO Memes Rise on Twitter! Share price falls to record low as Pre – IPO investor’s lock-in period ends.

Shares of the online food delivery and restaurant discovery platform Zomato, has become the talk of the town after the stock cracked over 22% in two days. Stock hit a fresh all-time low during the intraday trade today as the one-year lock-in period for its pre-IPO investors ended. Many shareholders sold their stocks in bulk on July 25, 2022, thus leading to a massive fall in stock prices.

What is the lock-in period?

Lock-in period, as the name suggests, is a time duration in which the shareholders cannot sell their holdings. Different types of investors have different tenures of lock-in periods. The lock-in period for anchor investors who bid for the shares during the IPO is 30 days. Whereas, for promoters and employees it ended on 23rd July, a year after the Zomato stock was listed on the stock exchanges. Since the market was closed on July 23, 2022, shareholders sold off their shares on July 25, 2022, when the markets opened.

Technical View on Zomato

On the technical perspective, Zomato stock is trying to take support near 40 levels in today’s session. We have applied a Fibonacci indicator to determine the nearest support and resistance level for the stock. A fall below this support, can drift price towards 30 level, which is 161.8% retracement level of Fibonacci. On the other hand, 49 is a very crucial resistance point for the stock. A divergence between RSI and prices suggest that the short term bottom has made today, if prices manage to hold 40 levels on the closing basis.

Get Daily Prediction & Stocks Tips On Your Mobile