Shares of Nazara Technologies surged in Wednesday's trade, extending their gains for the fourth straight session. The stock jumped 6.49 per cent to hit a day high of Rs 651 over its previous close of Rs 611.30 on BSE. Nazara Tech's consolidated net profit soared 76 per cent year-on-year (YoY) to Rs 18 crore in the quarter that ended December 2022 (Q3 FY23) against Rs 10.30 crore during the same period a year ago. The company's revenue rose by 69 per cent to Rs 314.80 crore.
"Strong Q3 FY23 results performance has ensured a strong uptrend in Nazara Technologies today," said AR Ramachandran from Tips2trades.
"In this quarter, it is heartening to see our flagship product for young children 'Kiddopia' come back onto a growth path as well as our recent acquisition Datawrkz deliver strong organic growth of around 55 per cent YoY," said Nitish Mittersain, Founder, CEO & Jt MD of Nazara Tech.
At today's high price of Rs 651, the stock has gained 11.39 per cent in four days. Nazara Tech has gained 34.50 per cent from its 52-week low of Rs 484, hit on June 22 last year.
That said, the scrip has lost 45.20 per cent from its one-year high level of Rs 1,187.98, touched on January 25, 2022.
Around 67,000 shares changed hands today on BSE, which was nearly four times higher compared to Nazara Tech's two-week average volume of 17,000 shares. Turnover on the counter stood at Rs 4.31 crore, commanding a market capitalisation (m-cap) of Rs 4,193.15 crore.
There were 12,945 buy orders, against sell orders of 11,870 shares.
Osho Krishan, Senior Analyst - Technical and Derivative Research at Angel One, said, "Nazara Tech is hovering within the cluster of its significant moving averages on the daily chart. The stock has been in consolidation for quite a long period with no sign of respite. As far as levels are concerned, Rs 575-580 is to be seen as immediate support, while any breach could disrupt the chart and plunge toward the lows of Rs 520. On the higher end, a series of resistance could be seen starting from Rs 680 to Rs 740, and until these levels are decisively breached, the stock is expected to remain within the mentioned range."
"Rs 624 will be strong support on the daily charts. Investors can buy on a slight dip till Rs 640 for targets of Rs 664-700 in the coming days," said Tips2trades' Ramachandran.
The stock was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages.
The counter's 14-day relative strength index (RSI) came at 64.09. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 114.41.
Nazara Tech has an average target price of Rs 1,031, Trendlyne data showed, suggesting a potential upside of 60.24 per cent. The stock has a one-year beta of 1.2, indicating high volatility.
Meanwhile, Indian equity benchmarks fell sharply in early deals, dragged by banks, financials, consumer and energy stocks.
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