Ola Electric share price is going to remain bullish till Rs 106.30, add it to watch list now
Ola Electric share price has seen significant fluctuations recently, particularly on October 8, 2024. The stock opened lower after the company received a show cause notice from the central government due to numerous customer complaints regarding scooter quality. This notice has raised concerns among investors, leading to a sharp decline in share value.
On October 7, 2024, Ola Electric’s share price plummeted over 9%, marking a continuation of a downward trend that has seen the stock drop nearly 11% over the past week and more than 17% in the last month. The stock reached a lifetime low of ₹90.82 on its listing day, which was a stark contrast to its initial public offering (IPO) price of ₹91.2 on August 9, 2024.
Main Points
As of October 8, 2024, Ola Electric shares opened at ₹86 and later recovered slightly to trade at around ₹90.95 by 9:50 AM. Despite the initial drop, the stock showed some resilience, trading 0.37% higher shortly after the market opened.
The company acknowledged the receipt of the show cause notice in an exchange filing. The notice was issued by the Central Consumer Protection Authority in response to over 10,000 complaints logged with the National Consumer Helpline regarding alleged violations of consumer rights and misleading advertising practices. Ola Electric plans to respond to this notice promptly and has stated that it does not currently impact its operational activities or financials.
Among analysts covering Ola Electric, there is a mixed outlook. Out of five analysts, four maintain a ‘buy’ rating while one recommends selling. The average consensus price target suggests a potential upside of 63.6%, indicating that analysts believe there could be significant recovery potential despite recent challenges.
Investors are closely monitoring key support and resistance levels for Ola Electric’s shares:
| Level Type | Price (₹) |
|---|---|
| Support Level | 76.00 |
| Resistance Level | 104.87 |
These levels are critical for traders looking to gauge potential entry or exit points in light of ongoing volatility in the stock price.
The sentiment surrounding Ola Electric has shifted significantly due to these developments. The company’s market capitalization currently stands at approximately ₹45,277 crores, reflecting investor concerns about its operational challenges and market share losses.
Ola Electric has been facing stiff competition in the electric vehicle market, which has contributed to its declining market share. Recent reports indicate that HSBC has expressed worries over these losses, further dampening investor confidence
Looking ahead, investors will be keenly watching how Ola Electric responds to the show cause notice and whether it can address customer complaints effectively. The company’s plans to expand its service network to 1,000 centers by December 2024 may help improve customer satisfaction and potentially stabilize its share price in the long run.
