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Zomato share price: Extending sell-off on sixth straight session, Zomato shares are down over 2 per cent in early morning deals. Zomato share price today opened with downside gap of over 2 per cent and hit intraday low of 54.05 on NSE. The food aggregator stock has been nosediving after it announced to acquire Blinkit (earlier known as Grofers) for 4,447 crore. The board of directors of Zomato had approved acquisition of cash-strapped Blinking on 24th June 2022. After announcement of this acquisition, Zomato shares have tumbled from 70.50 to 55.10 apiece levels, losing over 20 per cent in 6 straight sessions.

According to stock market experts, the stock is looking weak on chart pattern and it may move further down up to 30 to 25 levels, if it gives breakdown below 50 levels on closing basis. They advised investors to avoid taking fresh position in the counter and those who have this stock in their portfolio should strictly maintain stop loss below 50.

"In today's funding winter, people have increased their scrutiny on profitability, Zomato net losses tripled in the recent quarter. Investors are not taking it kindly the fact that a loss-making company is acquiring another company which might be subjected to strict govt regulations and has not yet demonstrated path to profitability," Yashvardhan Singh, principal associate at Sarvaank Associates, had said.

"Zomato shares are looking weak on chart pattern and it may become more weak below 50 apiece levels. Those who hold the stock should maintain strict stop loss below 50 as the stock may go up to 30 to 25 per shares after giving breakdown below 50 on closing basis. Fresh investors are advised to avoid taking any position in the counter and find out better stock for investment," said Sumeet Bagadia, Executive Director at Choice Broking.

In YTD time, Zomato share price has tumbled over 60 per cent and its current market cap is around 41,970 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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