Bruised but not beaten? Swiggy shares down 24% YTD, but a reversal may be on the cards

Swiggy shares, which have declined more than 24% year-to-date, are now showing early signs of a potential turnaround, as technical indicators suggest a shift in momentum. The stock has staged a mild recovery in recent weeks, climbing over 8% in the last two weeks and 4% in the past week, raising the question: has the worst already played out for the food delivery major in 2025?

With prices rebounding from key support zones and approaching important technical levels, analysts are beginning to track the movement more closely. While some are flagging early signs of bullish momentum and accumulation, others are advising caution, pointing to chart patterns that signal potential resistance ahead — making Swiggy’s next few moves crucial from a trend-confirmation standpoint.

Here’s what experts are saying:

According to Aakash Shah, Research Analyst at Choice Broking, the stock is showing signs of potential recovery after a prolonged consolidation phase near Rs 395.

He adds that “the stock has found repeated support around this level, suggesting that selling pressure is easing and buyers are stepping in.” Shah notes that after trending lower from the Rs 400–410 zone earlier this year, Swiggy has started forming higher lows since May, which he says hints at a shift from bearish to neutral-to-bullish momentum.

From a technical perspective, Swiggy is currently hovering near its 20-day EMA of Rs 396.38, while trading below the 50-day EMA. The 100-day and 200-day moving averages are overhead, acting as resistance levels.

Shah observes that the “20- and 50-day EMAs are beginning to flatten, indicating that short-term selling pressure may be weakening.” The Relative Strength Index (RSI) stands at 48.27, gradually rising from oversold territory, a level seen as an early sign of bullish momentum.

In terms of support and resistance, Shah says “immediate resistance lies between 405–407,” while Rs 375 acts as a key support level. “A successful breach above the short-term EMAs could propel the stock toward 430, providing a clear upside target,” he said, adding that the setup “offers a favourable risk-to-reward setup for short-term traders.”

However, not everyone is convinced the worst is over.

Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities, strikes a more cautious tone, warning that Swiggy’s daily chart is “signalling caution as the price action forms a Head and Shoulders pattern, a structure often associated with trend exhaustion.” Gandhi notes that the Rs 382–385 zone has served as a strong demand zone multiple times, but repeated tests are weakening it.

According to him, “a decisive breakdown below Rs 382 could accelerate downside momentum, potentially dragging the stock towards the Rs 360–365 zone.” On the upside, Gandhi adds that “any rebound will face immediate resistance at Rs 410–415.”

For now, Gandhi concludes, “the chart reflects a phase where cautious optimism meets rising pressure — making the next move crucial.”

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)