In the ever-evolving landscape of electric vehicles, Ola Electric has recently captured attention with a remarkable rebound from its 512-week lows. After plummeting to a new low of ₹46.37 per share on the NSE, the company’s stock staged a comeback, rallying approximately 15% in just one week. Despite this surge, it remains significantly below its peak, currently standing at 65% under its all-time high of ₹157.40. This situation raises a critical question for Indian investors: is now the right time to consider this stock for potential gains?

The Current Stock Performance of Ola Electric

Investors are closely monitoring Ola Electric shares, which are still trading about 26% under their upper price band of ₹76 per equity share. Market analysts are debating whether this dip presents a unique buying opportunity. Stock market specialists emphasize that the shares are nearing a pivotal breakout point at ₹56, which represents a 20-day exponential moving average (EMA) resistance level. Should the stock surpass this threshold, projections suggest a possible rise to around ₹64 on a closing basis.

Expert Insights on Ola Electric’s Stock Potential

Gaurav Goel, the Founder and Director at Fynocrat Technologies, provided insights into the fundamentals of Ola Electric’s stock. He noted that after an impressive launch, the stock has since declined approximately 65% from its 52-week high. Such drastic drops often indicate that investors may be reacting to market narratives rather than focusing on underlying fundamentals and valuations. Goel cautioned that while the electric vehicle sector holds tremendous long-term promise, it remains to be seen how effectively Ola Electric can leverage this potential. He advised that only those with a long-term investment perspective should contemplate adding this stock to their portfolio.

Technical Analysis and Future Projections

Turning to technical analysis, Anshul Jain, the Head of Research at Lakshmishree Investment and Securities, indicated that the stock has recently established a short-term bottom on March 18, accompanied by a notable increase in trading volume—over 500% of its 50-day average. The momentum continues, with current volumes five times greater than the 50-day average. However, resistance persists at the 20-day EMA around ₹56. A successful breakout above this level could set the stage for prices to venture toward the 50-day EMA at ₹64.

Conclusion: Should You Invest in Ola Electric?

In summary, while Ola Electric shows signs of recovery, investors should weigh the risks and potential rewards carefully. The stock’s recent performance and expert opinions suggest cautious optimism, particularly for those looking at a long-term investment horizon. As the electric vehicle market continues to expand, Ola Electric’s ability to capitalize on this growth will be a key factor to watch.