Rekha Jhunjhunwala portfolio stock jumps 21% in 7 days; should you buy, sell or hold?

Rekha Jhunjhunwala’s portfolio stock, Nazara Technologies, has been on a roll over the past year. The small-cap stock rose 2.5 per cent to hit a 52-week high of ₹1,224.40 in intraday trade on Wednesday, May 14. It finally closed 1.22 per cent up at ₹1,209, extending gains to the seventh consecutive session.

Nazara Technologies share price trend

Considering Wednesday's close, the stock has surged 21 per cent over the last seven days. Over the last year, the stock has jumped 97 per cent.

On a monthly scale, this Rekha Jhunjhunwala portfolio stock has jumped 19 per cent in May so far after a 7 per cent gain in April and a 4 per cent rise in March.

Nazara Technologies shareholding pattern

According to shareholding pattern data on the BSE, ace investor Rekha Jhunjhunwala held 61,83,620 shares, or 7.06 per cent stake, of the company by the end of the March quarter of the last financial year (Q4FY25).

Another popular investor, Madhusudan Murlidhar Kela, held 10,96,305 shares, or a 1.25 per cent stake.

Foreign portfolio investors (FPIs) cumulatively held 1,14,25,231 shares, or a 13.04 per cent stake.

Among domestic institutional investors, SBI Mutual Fund held 73,31,721 shares, or an 8.37 per cent stake, by the end of Q4FY25.

Should investors buy Nazara Technologies stock?

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, at the current juncture, Nazara Technologies has broken above a key resistance level at ₹1,160, which coincides with the R3 Camarilla yearly pivot.

The weekly RSI has entered the overbought zone above 70, reinforcing a strong bullish signal.

"A weekly close above ₹1,160 would confirm this breakout, potentially paving the way for an upward move toward ₹1,330," said Patel.

Ravi Singh, SVP - Retail Research, Religare Broking, pointed out that the stock has been in a steady uptrend since breaking above the key resistance level of ₹1,100, and since then it has gained momentum of more than 10 per cent till May 14.

In the near term, the stock may see some profit booking, and Singh believes the ₹1,150-1,180 range will be attractive accumulation levels.

He pointed out that the short-term key moving average of the 50-day EMA is positioned at ₹1,008, suggesting a strong demand zone, while the daily ATR stands at 35. On the weekly chart, the stock shows strong support in the ₹980–1,000 range.

"Based on the current price action, the preferred strategy would be to adopt a 'buy on dips' approach. Considering all technical factors, fresh long positions can be initiated in the ₹1,150–1,180 range with an upside potential of ₹1,280-1,320, with a strict stop-loss placed below the support zone of ₹1,100, aligned with the 50-day EMA," said Singh.

Hardik Matalia, Derivative Analyst at Choice Broking, highlighted that Nazara Technologies has shown remarkable strength, rallying over 20 per cent after breaking out from a consolidation range near the lower levels. This breakout confirms bullish intent and sets the stage for further upside, provided key support levels are respected.

Matalia said the momentum is in favour of the bulls, with the stock trading above all its key moving averages—short-term, medium-term, and long-term EMAs— showing the strength of the ongoing uptrend. This alignment of EMAs typically supports trend continuation and underscores the dominance of buyers in the current market structure.

However, the Relative Strength Index (RSI) currently stands at 87.82, indicating an overbought condition. While this is not an immediate sell signal, it does suggest that the stock may be due for a time-wise or price-wise correction in the near term. Such corrections are healthy within a broader uptrend and can offer better risk-reward entry points.

"Given the sharp rally and overbought conditions, investors holding the stock may consider booking partial profits at current levels while continuing to hold the remaining position with a trailing stop loss strategy. For those looking to initiate fresh positions or short-term trades, it is advisable to wait for a pullback and subsequent confirmation of a reversal before entering, as this would offer a more favourable entry aligned with risk management principles," said Matalia.

"The overall bullish trend remains intact as long as the stock sustains above the ₹1,000 mark. Any dip towards this zone or intermediate supports should be viewed as a buying opportunity, especially if supported by volume and price stability," Matalia said.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.