Shares of Ola Electric Mobility have fallen roughly 21% over the past month, extending a longer phase of weakness that has kept the stock under pressure since listing.
Currently trading near the Rs 28 mark, the counter is hovering close to its recent lows, leaving retail investors wondering whether this is a buying opportunity or a signal to stay away.
The decline has not been abrupt. It has followed a steady pattern of lower highs and lower lows, which typically reflects sustained selling rather than a one-off panic reaction.
Market participants say sentiment around new-age mobility stocks remains fragile, particularly when profitability timelines remain uncertain.
Hitesh Tailor, Technical Research Analyst at Choice Broking, believes the charts are still tilted to the downside. He says the stock “continues to exhibit pronounced weakness across both daily and weekly timeframes,” adding that it recently broke below the important Rs 30 to Rs 32 support zone.
That level had earlier acted as a cushion for the price, but after the breakdown, it is now likely to act as resistance on any rebound.
According to Tailor, the stock is trading below its key 50, 100 and 200-day exponential moving averages on both daily and weekly charts. That positioning generally signals a weak trend.
While the relative strength index is around 27, placing the stock in oversold territory, he cautions that “there is still no concrete price confirmation of reversal.”
In simple terms, the stock may look beaten down, but the charts have not yet flashed a reliable turnaround signal.
WHAT ABOUT FUNDAMENTALS?
Beyond technicals, investors are also weighing business performance. Ola Electric has been working to reduce losses and improve operational efficiency, but competition in the electric two-wheeler market remains intense.
Pricing pressures, subsidy changes and rising expectations from public market investors add to the challenge.
The company’s recent quarterly numbers showed efforts to narrow losses, yet revenue momentum and the path to sustained profitability remain key watch points.
For many long-term investors, clarity on margins, market share stability and execution will matter more than short-term price swings.
WHAT SHOULD INVESTORS DO?
For short-term traders, analysts suggest caution. A stock in a confirmed downtrend can continue falling longer than expected, even when indicators show oversold readings.
Without a clear shift in price structure and strong volumes supporting a move higher, fresh long positions carry higher risk.
For long-term investors, the decision depends on risk appetite and conviction in the electric mobility story. If one believes in the company’s ability to scale, improve margins and defend market share, gradual accumulation at lower levels could make sense.
However, this approach requires patience and the willingness to tolerate volatility.
The broader takeaway is straightforward. A 20% monthly decline signals weakness, not value by default. Until the stock shows signs of stabilising both technically and fundamentally, caution remains the prudent stance.
