Ola Electric Shares Surge 16% Despite Market Fall, Here’s What’s Driving Rally
Ola Electric shares jumped over 16% despite weak markets after the company announced a major battery technology milestone.
Mumbai: Shares of Ola Electric Mobility surged over 16 per cent on Thursday, even as benchmark indices BSE Sensex and NSE Nifty declined in early trade.
The 30-share BSE Sensex fell 243.57 points to 77,319.33, while the NSE Nifty dropped 88.3 points to 23,909.05 amid broader market weakness.
Ola Electric shares opened at Rs 30.49, higher than the previous close of Rs 30.29 on the BSE. The stock later touched an intraday high of Rs 35.36, marking a gain of 16.44 per cent.
The scrip was last seen trading at Rs 34.79, up 14.86 per cent, with a market capitalisation of Rs 15,402.62 crore.
The stock has gained 19.68 per cent over the last two sessions and outperformed its sector by 13.56 per cent. It also recorded intraday volatility of 8.76 per cent.
What is driving the rally
The rally follows the company’s announcement of its in-house developed lithium iron phosphate cell.
The company said its new ‘46100’ format LFP cell is larger than the existing NMC 4680 Bharat Cell and is expected to improve scale, cost efficiency and applicability across mobility and energy storage solutions.
The company added that the new battery technology will begin entering its products from the next quarter.
Technical indicators
On the technical front, the stock is trading above its 5-day, 20-day, 50-day and 100-day moving averages, but remains below the 200-day moving average.
The 14-day Relative Strength Index stands at 64.95. A level above 70 indicates overbought conditions, while below 30 signals oversold levels.
The stock has a 52-week high of Rs 71.24 and a 52-week low of Rs 21.21.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)