The outlook for Zomato is bullish. The stock has surged over 8 per cent last week. This marks the end of the corrective fall that was in place since the last week of September this year. It also indicates that a new leg of upmove has begun. Moving average cross overs on the daily chart also strengthens the bullish case. Immediate support is at ₹263. Below that ₹255-₹250 is a very strong support zone. Zomato share price can rise to ₹300-₹310 in the coming weeks.
Traders can go long now at ₹270. Accumulate on dips at ₹264. Keep the stop-loss at ₹253 initially. Trail the stop-loss up to ₹276 as soon as the stock goes up to ₹282. Move the stop-loss further up to ₹284 when the price touches ₹291. Exit the long positions at ₹305.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)