Sell Signal For Swiggy? SEBI RA Prabhat Mittal Highlights Bearish Technicals

Swiggy shares fell by 1% in early trade on Monday following the release of its March quarter (Q4FY25) earnings, which revealed a sharp increase in net losses even as the company posted robust top-line growth.

SEBI-registered analyst Prabhat Mittal noted that the stock is currently trading in negative territory, diverging from the broader Nifty index, which surged over 600 points. 

He emphasized that Swiggy’s stock appears weak on short-term charts.

The stock is currently trading below its 20-day, 50-day, and 100-day moving averages, with technical indicators such as the MACD (12,26) also signaling a sell. 

Mittal suggests that traders may consider selling Swiggy shares in the range of ₹325–₹330, setting a strict stop loss at ₹351, and targeting price levels of ₹290 and ₹270 for the short term.

The food delivery major reported a net loss of ₹1,081 crore, nearly double the loss of ₹555 crore posted in the same quarter last year. 

This came despite a 45% year-on-year jump in revenue from operations, which reached ₹4,410 crore—driven by strong performance across both the core food delivery business and quick commerce arm Instamart.

Instamart’s gross order value (GOV) doubled to ₹4,670 crore, aided by the addition of 316 new dark stores during the quarter.

Brokerage sentiment remains mixed. JPMorgan has maintained a bullish stance, with a target price of ₹540, implying 72% upside, and credited strong food delivery execution.

Motilal Oswal, however, remains Neutral, citing concerns over cash burn despite management commentary suggesting that quick commerce losses may have peaked. It revised its target price to ₹340, implying just 9% upside.

Meanwhile, retail investor sentiment on Stocktwits remains ‘bearish’, adding further caution for traders.

Swiggy shares have fallen 42% year-to-date (YTD). 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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