The counter saw demand after the media reported that the company has decided to stop its grocery delivery service from 17 September on the back of gaps in order fulfillment leading to poor customer experience. The online food delivery firm also pulled the plug on Nutraceutical business. Zomato had ventured into the nutraceutical business last year with the launch of health and fitness products.

In last one month, the stock has moved 11% higher as compared to a 5.3% rise BSE Sensex.

On the technical front, the stock's RSI (relative strength index) stood at 62.658. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 10 and 20 days simple moving average placed at 141.32 and 135.75 respectively. These levels will act as crucial support zones in near term.

Zomato is one of the leading Food Services technology platforms in India in terms of value of food sold, as of 31 March 2021. The company is present in 23 countries.

The food delivery firm posted a consolidated net loss of Rs 356.2 crore in Q1 FY22, higher than the net loss of Rs 99.8 crore in Q1 FY21. The company's net sales jumped 217% year on year to Rs 844 crore in Q1 FY22 over Q1 FY21.

Shares of Zomato entered bourses on 23 July 2021. The scrip was listed at a price of Rs 115, a premium of 51.32% to the issue price of Rs 76 per share. The initial public offer (IPO) of online food delivery platform Zomato received bids for 2,751.27 crore shares as against 71.92 crore shares on offer. The issue was subscribed 38.25 times. The issue opened for bidding on 14 July 2021 and closed on 16 July 2021. The price band of the IPO was fixed at Rs 72-76 per share.