Breakout stock: Ola Electric shares sprint 23% in 2 days on volume surge

Business Standard

6 hours ago

Ola Electric shares have seen hge volume surge on the counter over the past two days amid bulk deals. Technical charts show a "strong buy signal" for the electric two-wheeler stock
New Delhi
Ola Electric share price today
In a dramatic turnaround in their market moves, Ola Electric shares have been moving higher on the bourses over the past two days, aided by heavy volumes.
The stock of the electric two-wheeler manufacturer zoomed 14.5 per cent on the BSE in the intraday trade on Wednesday, adding on to the 8.7-per cent stock rally seen on Tuesday. By comparison, the BSE Sensex was up 143 points (0.21 per cent) at 10:45 AM.
Ola Electric volume surge
Till the time of writing this report, roughly 36 million shares had changed hands on the BSE as against a two-week average of 12.9 million shares.
Combined with the volume on the National Stock Exchange (NSE), 520.3 million shares have changed hands on the Ola counter so far in the session.
Notably, 580 million shares of Ola Electric changed hands on the bourses on Tuesday, the highest in a month.
NSE's bulk deal data shows that Graviton Research Capital LLP bought 3,20,44,542 (32.04 million) Ola shares at a price of ₹44.13 per share and sold 3,20,38,456 (32.03 million) shares at a price of ₹44.16 per share on Tuesday.
Similarly, Hrti Private Ltd bought 3,56,98,031 (35.69 million) shares at a price of ₹44.26 per share and sold 2,77,29,731 (27.72 million) shares of Ola Electric at a price of ₹44.15 per share yesterday.
Should you buy Ola Electric shares now?
According to analysts at Systematix Group, Ola Electric shares have given a decisive bullish breakout above ₹44.8 per share levels, backed by a strong price action and above-average volumes. This, the brokerage said, suggests a 'start of a fresh upward trend'.
"The stock not only closed above its 20-day and 50-day simple moving average (SMA) on Tuesday, confirming a positive shift in the short-to-medium term outlook, but has demonstrated resilience by defending the crucial support zone of ₹39.80-₹40.80 levels," it said in a note on Wednesday.
The brokerage believes the rebound in Ola Electric shares has paved for a 'higher high-higher low' formation on technical charts, reinforcing strength in the ongoing momentum.
Moreover, the stock has broken out of the upper end of the Bollinger Band, indicating a volatility expansion on the upside and "generating a fresh buy signal".
"This structure creates the best risk-reward ratio. Investors can buy Ola Electric shares in the cash market at ₹44.90-₹43 zone, with a strict stop loss of ₹40. The near-term targets are ₹49.80-₹55," Systematix Group said.