Nykaa Shares Crash To Record Low Amid Heavy Sell-Offs
Nykaa shares continued to crash and hit a record low as stock continues to decline amid heavy selloffs. Currently it’s priced at an all time low ₹123 per share.
The shares of FSN E-Commerce Ventures Ltd, the company that owns the cosmetics-to-fashion shop Nykaa, fell to an all-time low on Wednesday morning at 123 per share, down more than 6% on the BSE.
The stock has been under pressure over the previous few days and has fallen almost 19% in the last 5 trading sessions, falling less than 2% at that time than the benchmark BSE Sensex.
Nykaa’s share price chart pattern indicates a lower top, lower bottom formation, and the stock has been steadily falling since it broke down at a price of 160 per unit.
If the present support is broken, the fashion retail stock may approach double-digit levels. The immediate support is set at 110 levels.
Anuj Gupta, Vice President Of Research at IIFL Securities, recommended those who own this stock in their portfolios to have a strict stop loss around 110 and try to leave the position on any bounce brought on by short covering.
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According to media sources from last week, a block deal was used to raise $26 million by selling the shares of the Nykaa parent company at 148.90 each.
In December, block deals were used to purchase shares of FSN E-Commerce Ventures from Goldman Sachs, Mirae Asset Mutual Fund, ICICI Prudential Life Insurance Company, and Canada Pension Plan Investment Board.
The new age tech stocks, such as Paytm, Zomato, PB Fintech, and Delhivery, have struggled on the stock market since their latest listings and have been trading below their corresponding issue prices.
Nykaa shares created their stock market debut in November 2021, and the counter has fallen more than 67% since its listing.
The 3rd quarter ended December 2022’s results for Nykaa have not yet been released (Q3FY23).
In comparison to the same period a year prior, Nykaa’s consolidated net profit for the three months ended September 2022 more than doubled to $5 crore.
In Q2 FY23, the combined Gross Merchandise Value (GMV) increased by 45% year over year (YoY) to $2,345.7 crore.
