According to Hardik Matalia, Derivative Analyst at Choice International, the stock has been in a consistent downtrend since listing, forming a series of lower highs and lower lows — an indication of persistent weakness. “Although it witnessed a minor bounce from lower levels, the stock is again facing rejection near its resistance zone, suggesting that selling pressure remains intact,” he said. Matalia added that the RSI, placed around 46.45 and turning downward, points to weakening momentum and lack of fresh buying interest.
He advises short-term traders to avoid any fresh entries until a clear reversal is confirmed. “Long-term investors should also wait for a decisive trend change before considering accumulation,” he noted. On the downside, immediate support lies in the Rs 132–Rs 138 range, and a breach below this could trigger further selling. On the upside, a sustained move above Rs 155 would confirm a potential reversal and open up buying opportunities.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, shared a similar view. He observed that the stock is trading within a descending channel, reflecting a continuing bearish setup. “The price has recently taken support near the lower trendline around Rs 130–Rs 134 and witnessed a minor pullback. However, the stock is still facing resistance from the 20-day SMA in the Rs 147–Rs 150 zone and the upper boundary of the channel, indicating selling on rallies,” Gour said.
He added that Urban Company’s overall structure remains weak as it trades below all key moving averages. Both MACD and RSI indicators are negatively poised, confirming the prevailing downtrend. “If the stock sustains below Rs 130–Rs 134, it could test stronger support near Rs 120. Conversely, sustaining above Rs 150 may extend the recovery toward Rs 165,” he said.
Om Mehra, Technical Research Analyst at SAMCO Securities, suggests a contrarian view, adding that the stock might be attempting to base out. “Urban Company has been recovering gradually after a steep 34% correction from its post-listing high. A bullish piercing candle near Rs 131 indicates the stock could be emerging from a consolidation phase, supported by improved volumes and buying interest at lower levels,” he said. He pointed out that Rs 147, which corresponds to the 23.6% Fibonacci retracement level, remains a key hurdle. A close above it could pave the way toward Rs 155 and Rs 166. On the lower side, as long as the stock maintains the Rs 130–Rs 133 zone, the ongoing base formation may evolve into a gradual recovery in the sessions ahead.On the earnings front, Urban Company reported a widened consolidated net loss of Rs 59 crore in Q2 FY25, compared to a loss of Rs 2 crore in the same period last year. However, revenue from operations rose sharply by 37% year-on-year to Rs 380 crore from Rs 277 crore. The company’s adjusted EBITDA loss stood at Rs 35 crore, mainly due to a Rs 44 crore loss from its new vertical, Insta Help. Excluding this segment, the business delivered an adjusted EBITDA profit of Rs 10 crore, representing 0.9% of Net Transaction Value (NTV).Urban Company, India’s largest tech-enabled home services marketplace, had made a stellar stock market debut on September 17, listing at a 57.5% premium on NSE at Rs 162.25 compared to its issue price of Rs 103. The Rs 1,900 crore IPO saw robust demand, with an overall subscription of over 103 times—led by Qualified Institutional Buyers who bid 147 times, followed by Non-Institutional Investors at 77 times and retail investors at 41 times.
(Disclaimer: The recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times.)