Ola Electric shares continue to fall, with analysts predicting further decline towards IPO levels. Declining sales and service issues contribute to bearish sentiment. Is this a buying opportunity or time to exit?

Ola Electric’s stock price experienced a decline of nearly 4% on Monday, reaching an intraday low of ₹83.61. This downward trend marks the fourth consecutive session of losses for the company. Since reaching a record high of around ₹156 per share shortly after its listing, the Ola Electric stock has fallen approximately 47%.

Factors Contributing to the Decline

This slump can be attributed to a combination of factors, including declining sales and concerns surrounding service-related issues. Despite these challenges, Ola Electric reported selling over 15,672 vehicles by mid-October, securing a 34% market share in the electric two-wheeler market.

Growth and Expansion

The company’s market growth is primarily fueled by the popularity of its S1 scooter lineup and its efforts to expand its service network. Ola Electric aims to maintain this momentum throughout the festive season leading up to Diwali.

Technical Analysis and Expert Opinions

Technical analysts have weighed in on Ola Electric’s stock performance, offering insights and predictions. Riyank Arora, a technical analyst at Mehta Equities, highlights the breach of the ₹86 support level, suggesting a further decline to ₹75. However, Arora believes this level could present a buying opportunity.

Anshul Jain, head of research at Lakshmishree, points out the stock’s steady downtrend since its post-IPO peak of ₹150 and its current proximity to the IPO low of ₹76. Jain notes the weak structure and high-volume selling as indicators of bearish sentiment.

The future of Ola Electric’s stock remains uncertain. While the company demonstrates growth potential in the expanding electric vehicle market, challenges such as declining sales and service-related issues weigh heavily on investor sentiment. Technical indicators suggest further decline is possible, but also hint at potential buying opportunities. Investors are advised to exercise caution, conduct thorough research, and consider the expert opinions presented before making any investment decisions regarding Ola Electric.

About the author

View All Posts

Mahak Aggarwal

With a BA in Mass Communication from Symbiosis, Pune, and 5 years of experience, Mahak brings compelling tech stories to life. Her engaging style has won her the 'Rising Star in Tech Journalism' award at a recent media conclave. Her in-depth research and engaging writing style make her pieces both informative and captivating, providing readers with valuable insights.