Zomato Set to Fall After Disappointing Quarter

Zomato's share price has already fallen around 12% from its day high, following the release of disappointing quarterly results. In Q3, Zomato's net profit declined by 57% year-over-year, totaling 59 crore rupees. Due to this poor performance, selling pressure is likely to continue. The stock is currently near its intraday support level of 230 rupees, which is likely to break.

We should wait until the share price breaks below this level and sustains there for a while before considering a short trade. However, if the share price opens with a gap down, we should wait for a retest of the 230 rupee price level before entering the trade. Our first target for this trade would be the 200 rupee price level, which represents a potential decrease of approximately 13% from the current point.