Today, the stock witnessed some profit booking and was trading 1.67% lower at Rs 257.40 on the BSE around noon.
In just the last one week, the stock has gained 6.8%, while the two-week performance stands at a notable 8.7%. Over a three-month period, Nykaa has rallied over 27%, with a year-to-date gain of 56%, indicating sustained buying interest.
With the broader market seeing improved risk appetite and investors showing a renewed interest in digital-first consumer platforms, Nykaa has emerged as a strong outperformer. Robust volumes and positive price action have further added to the bullish sentiment, drawing attention from both retail and institutional participants.
Kunal V Parar, VP of Technical Research and Algo at Choice Broking, observed, “On the daily chart, the stock is trading above its 100-day moving average, indicating a sustained positive trend.”
He noted a key technical development in the recent upmove: “The stock has already given a breakout above its previous top near Rs 230, suggesting strong upward momentum and the potential for further gains.”According to him, the ongoing rally has more legs to it, as “it has surpassed the upper band of its rising channel formation, signaling an acceleration in the ongoing uptrend.” On the momentum front, he added, “The RSI, currently placed at 74.30, is also moving along an upward rising trendline, reflecting strong bullish momentum in the counter.”Based on this technical structure, Parar stated, “We expect the stock to move higher towards the Rs 284–Rs 315 range, with a strict stop loss at Rs 240.”
Further, Shitij Gandhi, Sr. Research Analyst (Technicals) at SMC Global Securities, echoed the bullish outlook, highlighting the recent breakout as a key signal.
“The stock has posted a sharp breakout on the daily chart, reflecting a strong comeback of bullish momentum,” he said. Gandhi noted that the stock had moved past the Rs 260 mark “on the back of robust volumes, signalling fresh buying interest from traders.”
Commenting on the structure of the rally, he remarked, “The stock has carved out a V-shaped recovery, effectively erasing its recent losses and reaffirming its upward trajectory. The price action highlights renewed confidence and suggests that bulls are firmly in control.”
He advised, “Traders already holding positions may continue to ride the trend with a trailing stop around Rs 245, while new entrants can look for buying opportunities on minor dips, eyeing potential targets near Rs 280 and above in the short term.”
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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