Nazara Technologies shares skid 23% in 2 days; what's next for this gaming stock?

Shares of Nazara Technologies Ltd extended their sharp decline for a second straight session on Thursday, slipping 11.19 per cent to touch a low of Rs 1,085. With this, the stock has fallen 22.58 per cent in just two trading days.

The digital entertainment company recently clarified media reports concerning the proposed Promotion and Regulation of Online Gaming Bill, 2025, stating that it does not expect any material adverse impact on its financial performance (Revenue or EBITDA).

"Nazara has no direct exposure to real money gaming (RMG). As per its Q1 FY26 results, the contribution of RMG to Revenue and EBITDA is NIL. The only indirect exposure comes from its 46.07 per cent stake in Moonshine Technologies Pvt Ltd (PokerBaazi). Since Nazara neither holds a majority stake nor exercises control, Moonshine's revenue is not consolidated in Nazara's financials. In fact, Moonshine's contribution to PAT as share of profit/loss from associates was negative in Q1 FY26," the company said.

Alongside its results, the Board also approved certain corporate actions, subject to shareholder approval through a postal ballot. The authorised share capital will be raised from Rs 50 crore to Rs 80 crore, with necessary amendments to the Memorandum of Association.

Additionally, the company announced a stock split, subdividing each equity share of Rs 4 face value into two shares of Rs 2 each. This will be followed by a 1:1 bonus issue, granting one Rs 2 bonus share for every Rs 2 share held. The record date for the bonus issue will be declared later.

Technically, Support for Nazara Tech is placed in the Rs 989–1,080 range, while resistance lies between Rs 1,184 and Rs 1,200. Analysts recommend caution, suggesting fresh entries only above Rs 1,184, which could open the path towards upside targets of Rs 1,300–1,362.

"Nazara Tech witnessed a sharp decline over the past week, denting its earlier positive outlook. The stock is currently trading close to its 200-day simple moving average (SMA) at around Rs 1,100. A further fall could trigger corrections towards the Rs 1,000 mark. The near-term sentiment looks weak, and investors are advised to wait for stability before taking fresh positions," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

"The counter is bearish but oversold on daily charts, with the next support at Rs 989. Buying should only be considered if the stock closes above the resistance of Rs 1,184, which could lead to an upside target of Rs 1,362," noted Sebi-registered analyst AR Ramachandran.

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, highlighted support at Rs 1,080 and resistance at Rs 1,200. A move above Rs 1,200 may open the door for Rs 1,300, while the stock is expected to trade within the Rs 1,080–1,300 range in the short term.