Paytm, Zomato, Indiabulls Housing look oversold; can jump up to 25%

Among the beaten down mid- and small-cap stocks, Paytm and Zomato can provide some relief to investors, while stocks like Metropolis Healthcare and Latent View Analytics could see further pain

The Indian stock markets have been on a downward spiral since last October, wherein the key benchmark indices have shed almost 16 per cent from their record peaks. There is a sense of fear and confusion on the Street given the spike in volatility and underlying unpredictable nature of the market itself.
 

In the recent past, select mid- and small-cap stocks have caused notable destruction to investors wealth as well-known stocks tumbled over 40 per cent from their respective peaks on valuation and future growth concerns.
 

Among the mid-caps, Metropolis Healthcare has tanked 57 per cent so far this year. One 97 Communications, promoter of Paytm, has plunged 53 per cent on YTD, and 70 per cent from its debut price. Food-delivery major - Zomato -  has seen its stock price drop by 50 per cent so far in 2022.

Similarly, in the small-cap segment, shares of Latent View Analytics, the highest subscribed IPO in India so far, has fallen almost 40 per cent on a YTD basis. Likewise, one of the best performing stock in 2018 - Indiabulls Housing Finance , which had then skyrocketed 1,000 per cent in four years, has now slumped a whopping 90 per cent from its historic peak. 

Given this backdrop, let consider the possible future outlook on technical charts on these select stocks:-

Latent View Analytics Ltd (LATENTVIEW)

Outlook: Unwise to bottom fish here

The stock, post its debut in November 2021, offered 150 per cent returns over the issue price. It,however, has changed course and now trades at a fresh all-time lows. The stock has lost its critical support at Rs 480 and correspondingly at Rs 360, and appears to be in a strong bearish grip. Thus, until the counter does not show stability and sustainability, it is unwise to look and bottom fish at this counter. CLICK HERE FOR THE CHART

One 97 Communications Ltd (PAYTM)

Likely target: Rs 700

Upside potential: 12%

The stock seems to be accumulating around the Rs 500-mark every now and then, shows the weekly chart. However, until PaytM does not conquer its selling hurdle in the range of Rs 800 to Rs 700, any major turnaround for the stock should not be expected. As of now, the trend indicates the possibility of a rally towards its hurdle range with support seen at Rs 550. CLICK HERE FOR THE CHART

Zomato Ltd (ZOMATO)

Likely target: Rs 100 (provided it crosses and sustains over Rs 80)

Upside potential: 25%

Shares of Zomato are struggling to conquer the obstacle of Rs 80 mark, as per the daily chart. As and when the stock manages to cross the same, the price action breakout could trigger an upward rally towards Rs 100. The Moving Average Convergence Divergence (MACD) has crossed the zero line upward, demonstrating a positive dynamic. At the current scenario, the support for the stock is positioned at Rs 60. CLICK HERE FOR THE CHART

Metropolis Healthcare Ltd (METROPOLIS)

Likely target: Rs 1,100

Downside potential: 24%

The broader outlook for the stock indicates that it has lost its major support marks at Rs 2,500 and Rs 1,900. The following support now exists at Rs 1,100 and the trend seems to be heading towards the same, shows the weekly chart. Only a consolidation or sideways movement around Rs 1,400 could see some stability, otherwise the prospect remains weak and negative, hints the daily chart too. CLICK HERE FOR THE CHART

Indiabulls Housing Finance Ltd (IBULHSGFIN)

Outlook: Wait and watch

The stock price of Indiabulls Housing Finance is nearing its March 2020 lows. The shares broke out over the Rs 90 mark, during the same era and scaled Rs 300 thereafter. Thus, the present price is near the support, rather breakout area and one needs to wait for a confirm trend to emerge. The March 2020 low was at Rs 77 and continues to stay as a broader support, shows the weekly chart. CLICK HERE FOR THE CHART