Zomato Share Price Falls Over 10% After BofA Downgrade to ‘Neutral’

Summary:
• Zomato shares drop over 10% after BofA downgrade to ‘Neutral’; stock nears ₹200 support as bearish momentum builds.

Zomato Ltd. shares have dropped more than 10% since Bank of America (BofA) downgraded the stock to ‘Neutral,’ raising concerns over valuation and profitability. The stock, which recently traded around ₹226.93, has now slipped to ₹203.29, erasing recent gains and threatening to break below the crucial ₹200 psychological mark.

What Triggered the Zomato Fall?

• BofA Downgrade: BofA cited near-term margin headwinds in Zomato’s food delivery segment and a plateau in growth, prompting a shift from ‘Buy’ to ‘Neutral’.
• Revised Target: The brokerage also slashed its target price to ₹250, signaling a muted outlook and limited upside potential from previous expectations.
• Weak Sentiment in New-Age Stocks: With growing investor scrutiny on tech valuations and delivery unit profitability, the downgrade amplified bearish sentiment.

Technical Breakdown: Zomato Cracks Below Key Levels

Zomato’s daily chart paints a bearish picture, confirming a technical correction of 10.4% from the recent swing high.

Support Levels:

• ₹203.29: Immediate support, currently under retest.
• ₹200.34: A critical zone — breakdown here could trigger steeper falls toward ₹190 or even ₹180.

Resistance Zones:

• ₹211.00: Nearest resistance that must be cleared to reverse momentum.
• ₹226.93: Recent top where selling pressure intensified.

Conclusion

Zomato’s sharp 10% drop following BofA’s downgrade has brought the stock to a critical technical juncture. With ₹200 acting as a make-or-break level, the coming sessions will be crucial in determining whether buyers step in or the downtrend deepens. For now, caution remains key — especially with broader market sentiment turning selective around high-growth tech names.