Chart check: Are new-age stocks witnessing a trend reversal or pullback?

The present scenario of new-age stocks reveals a pullback (rebound) in their stock prices, show technical charts

In technical analysis, trend reversal is a scenario where a stock or index deviates from the existing trend, and moves in the opposite direction. If the existing trend is upward, the trend reversal would mean a downward trend has begun, and vice versa.

However, a pullback is a state where the instrument rebounds from the existing trend, but instead of taking a clear reversal, its returns to the earlier trend in a short period of time.

Recently, new-age companies such as One 97 Communications, Zomato, PB Fintech, Fsn E-Commerce Ventures, and Delhivery have evolved with similar formations on their respective share price charts. 

In last 7 to 10 sessions, shares of PB Fintech and One 97 Communications have soared close to 30 per cent, while Zomato and Fsn E-Commerce Ventures have risen between 20 per cent to 15 per cent each.

Shares of Delhivery remained laggard during this period, but still flourished to scale close to 10 per cent. 

Shares of Fsn E-Commerce Ventures on Tuesday plunged over 5 per cent, post reporting 71 per cent decline in net profit YoY in its December ending quarter. PB Fintech and Zomato fell over 2 per cent, while One 97 Communications and Delhivery lost 1.50 and 0.50 per cent, respectively. 

To understand the next trend in these new-age stocks, let consider technical outlook:- 

One 97 Communications Ltd (PAYTM)

Outlook: May gain 15 per cent if hold 200-DMA

The recent reversal has surpassed the most crucial 200-day moving average (DMA) positioned at Rs 631 level. If the stock thrives to hold this support mark, only then this possible reversal may attain certainty. The following support exists at Rs 581, its 100-DMA, which the counter needs to defend to avoid re-entering in the downtrend. The hurdle for the stock is at Rs 780 level, the mark that witnessed gap-down close in September last year. CLICK HERE FOR THE CHART

PB Fintech Ltd (POLICYBZR)

Outlook: Needs to cross and sustain over the 50-WMA
 

While the stock has recently seen a sharp rebound, the price action is struggling to cross the major hurdle of Rs 543, its 50-weekly moving average (WMA). This shows a selling pressure in the range of Rs 550 to Rs 540 levels. If the stock overcomes this range and manages to sustain over, only then the breakout could see a rally to Rs 650. Immediate support for the stock exists at Rs 500, as per the daily and weekly charts. CLICK HERE FOR THE CHART

Zomato Ltd (ZOMATO)

Outlook: Breakout over Rs 55 

Shares of Zomato may scale higher ups when the price action succeeds to hold momentum over Rs 55 level. On the other hand, if the stock falls beneath Rs 48, technically it shall reveal weakness, leading back to test the support of Rs 45. A decisive breach under Rs 45 could mean the stock is headed to its 52-week low of Rs 40.60.  While there are positive divergences of the Relative Strength Index (RSI), the follow-up buying fails to reappear on the higher highs, as per the daily chart. CLICK HERE FOR THE CHART

Fsn E-Commerce Ventures Ltd (NYKAA)

Outlook: Bullish trend only above Rs 160

Shares of Nykaa need to conquer the major barrier of Rs 160 to enter the positive territory, as per the daily chart. Until that happens, the stock is likely to see elevated sell-off on every up move. On the downside, the immediate support comes to Rs 135: if this is breached, the trend may end-up hitting new 52-week low of Rs 110. The momentum indicator, Moving Average Convergence Divergence (MACD) is attempting to cross the zero line; if the stock succeeds in crossing Rs 160, the momentum indicator may further propel the stock forward. CLICK HERE FOR THE CHART

Delhivery Ltd (DELHIVERY)

Outlook: Breakout over Rs 327

Shares of Delhivery have to surpass Rs 327-mark, its 50-DMA hurdle, which the stock failed to conquer since November last year. The breakout shall then move in the direction of Rs 370- Rs 380 levels. The current scenario on the daily chart reveals a sideways trend, with an upward inclination. The support for the stock is at Rs 300 levels. CLICK HERE FOR THE CHART