Ola Electric Mobility share price triggered its upper circuit on its first day of listing at the BSE exchange on Friday. The EV company’s decision to list at its IPO price attracted a swarm of investors, with the share price climbing from Rs 76 to Rs 91.18- a massive 20 percent gain that saw trading in its stock halted after hitting the upper circuit. The excitement around the Ola Electric Mobility (NSE: OLAELEC) listing was palpable, having run a successful IPO that raised $734 million at a valuation of $4.8 billion- India’s largest IPO so far in 2024.
The company dominates India’s electric scooter market, with its share estimated at 39 percent. Furthermore, it has recently ventured into electric motorcycles, with the first units set to hit the market starting next week. Motorcycles are the most common means of transport in the world’s most populous country, India, and the Indian Government’s policies of promoting renewable energy is expected to spur growth in the electric mobility sector. That places Ola Electric Mobility at a vantage point as the nation aims to transitions to renewable energy for 50 percent of its energy needs by 2030.
As the stock has only been trading for a day, we use the 15- minute chart to weigh its momentum. The chart shows that the price is above the Volume Weighted Moving Average line, and lies marginally below the psychological barrier at Rs 92.00. Also, the RSI indicator reads 93, confirming the strong bullishness. However, at that mark, the stock is clearly oversold, and is due for correction. Therefore, I expect it to ease down in the near term as the market settles.
Ola Electric share price will likely stay on the upside if the buyers manage to keep it above 90.05. In that case, the first resistance will likely be at 92.00. However, if they extend their control, the buyers could break above that mark, and clear the path to test 93.75. Conversely, if the price goes below 90.05, it will favour the sellers to take control, in which case the first support could come at 88.50. Extended control by the sellers at that point will breach the support and potentially build the momentum to test 86.60.
This post was last modified on %s = human-readable time difference 13:06