MobiKwik shares zoom 30% in three days; what analysts say on next move?

Shares of One MobiKwik Systems, the parent company of MobiKwik, extended their gains for the third straight session on Wednesday. The stock rose 5.74 per cent to close at Rs 256, taking its three-day gain to 30.35 per cent.

The sharp rally follows the company's recent announcement that it has received in-principle approval from the Reserve Bank of India (RBI) for a Payment Aggregator – Physical (PA-P) licence.

MobiKwik said the approval will enable it to deepen its offline merchant payments business across India.

"The approval marks an important milestone in MobiKwik’s evolution as a full-stack fintech platform serving consumers and merchants through payments and financial services," the company said in an exchange filing.

MobiKwik currently supports a network of 4.9 million merchants through products including UPI QR, Soundbox and EDC machines. The company has identified small businesses, oil & gas outlets and organised retail as its three strategic focus segments for the next 18-24 months.

It aims to expand its market share across these segments and significantly increase Soundbox and EDC deployments as part of its target of achieving 10x growth in its merchant business by FY28.

Technical view

According to AR Ramachandran, Sebi-registered research analyst at Tips2trades, "Mobikwik is bullish but also overbought on daily charts with next resistance at Rs 271. Investors should keep booking profits as a daily close below the support of Rs 237 could trigger a fall towards Rs 184 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said, "MobiKwik has witnessed a strong technical breakout after decisively taking out its major resistance zone near Rs 240. The stock is currently placed around Rs 256, indicating sustained buying interest following the breakout. The breakout is likely to remain constructive as long as the stock continues to hold above the Rs 240 breakout zone on a sustained basis."

Patel also said, "Any dips towards the breakout area can be monitored for stability and buying interest. If the stock sustains above Rs 240 and the positive momentum continues, the counter can potentially move towards the Rs 275–280 zone in the coming sessions. Overall, the technical setup remains positive, with Rs 240 emerging as an important support level and a key level to watch for the continuation of the uptrend."