Urban Company shares tumble nearly 30% from record high after stellar IPO. Time to buy or exit?
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Shares of Urban Company have been under heavy selling pressure, slipping nearly 30% from their post-listing high of Rs 201.18. After a strong market debut in mid-September, the stock had briefly touched record levels before entering a sustained downtrend. The recent weakness has left investors wondering if the correction offers a buying opportunity or if it’s time to stay on the sidelines. 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 trade...