Is Swiggy’s Bolt Expansion A Game Changer?

Kunal Rambhia, Founder of The Streets, discusses the recent surge in Swiggy's stock, which has risen by 12%, marking a strong rebound from its recent lows. He explains that while Zomato has been in momentum, Swiggy has largely been out of the spotlight, but today’s rally has brought the company back into focus. Kunal attributes this rally to Swiggy’s new quick food delivery service, Bolt, which is now operational in 500 cities across India. Bolt has gained significant traction, powering over one in every ten food delivery orders in less than six months.

Kunal shares his technical analysis, noting that despite Swiggy's recent rise, the stock is still 45% below its previous highs, indicating that the rally may just be starting. He points out the importance of volume activity, as today's trading volume is higher than the six-month average, which could signal a potential buying opportunity. However, Kunal advises a cautious approach, suggesting that investors should initiate only 30% of their buy positions and wait for any potential price pullbacks. He highlights a breakout point at ₹355, where the stock could see a fresh upward trend if it surpasses this level.

When comparing Swiggy to Zomato, Kunal mentions that he still prefers Zomato due to its clearer trend and more available data. However, from a risk-reward perspective, Swiggy may offer a better opportunity for those willing to take on more risk.