Zomato Breaches Crucial Fibonacci Retracement Level
Zomato has today breached the crucial 0.618 Fibonacci retracement level, a significant technical indicator. If Zomato can sustain and hold this breakdown, the next level to watch out for is Rs. 161.45. However, it is important to note that at this projected level, the valuation of Zomato would be approximately INR 1,40,000 crore. This is a steep valuation, and it is important to consider whether Zomato's future earnings can justify this valuation. Because in this counter everyone is playing and discounting the price with respect to future earnings.
Zomato has made significant progress in recent quarters, moving from a loss of INR 188 crore in March 2023 Quarter to a profit of INR 2 crore in June 2023 and INR 36 crore in September 2023 quarter respectively. However, these profits are still relatively small very very small, and it is not clear whether Zomato can continue to grow at the same rate in the future.
Overall, the breakdown of Zomato from the 0.618 Fibonacci retracement level is a a sign of concern, so it is important to temper this caution. Zomato's valuation is high, and its future earnings are uncertain. Investors should carefully consider these factors before making any investment decisions.
Zomato has today breached the crucial 0.618 Fibonacci retracement level, a significant technical indicator. If Zomato can sustain and hold this breakdown, the next level to watch out for is Rs. 161.45. However, it is important to note that at this projected level, the valuation of Zomato would be approximately INR 1,40,000 crore. This is a steep valuation, and it is important to consider whether Zomato's future earnings can justify this valuation. Because in this counter everyone is playing and discounting the price with respect to future earnings.
Zomato has made significant progress in recent quarters, moving from a loss of INR 188 crore in March 2023 Quarter to a profit of INR 2 crore in June 2023 and INR 36 crore in September 2023 quarter respectively. However, these profits are still relatively small very very small, and it is not clear whether Zomato can continue to grow at the same rate in the future.
Overall, the breakdown of Zomato from the 0.618 Fibonacci retracement level is a a sign of concern, so it is important to temper this caution. Zomato's valuation is high, and its future earnings are uncertain. Investors should carefully consider these factors before making any investment decisions.