Swiggy gains nearly 5% after IIFL Capital projects 50% upside. Retail sentiment turns bullish as stock tests key resistance.

Swiggy shares gained nearly 5% on Thursday after brokerage firm IIFL Capital implied 50% potential upside on the stock in its note.

IIFL Capital initiated coverage on Swiggy with a ‘Buy’ call and a target of ₹535. They believe that a successful execution in Quick commerce (QC) could provide asymmetric upside in the stock, with easing competition in QC and market share gains in Food Delivery (FD) as key catalysts.

The brokerage said that Swiggy is potentially seven to five quarters behind its competitor Eternal in FD and three to eight quarters behind in QC on gross order value (GOV) and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margins. IIFL Capital sees this as a function of slower execution in the past rather than a competitive disadvantage.

Swiggy is India’s second-largest food tech company, and its shares have gained nearly 8% in just two sessions.  

SEBI-registered analyst Akhilesh Jat is also bullish on the stock, highlighting that it has seen a 30% rally from its recent low of ₹297. The stock is now hovering near a crucial resistance at ₹387.

Jat noted that a decisive breakout above ₹387, followed by two consecutive closes above this level, may lead to a sharp upmove toward ₹460 in the short term. 

The structure remains bullish, supported by rising volumes and strong price action. On the downside, he expects ₹345 to act as a key support zone. Jat advises keeping a stop-loss below ₹340 to manage risk effectively.

Data on Stocktwits shows that retail sentiment turned ‘bullish’ a day ago.

Swiggy sentiment and message volume on June 19 as of 1:30 pm IST. | source: Stocktwits

Swiggy shares fell 31% year-to-date (YTD).

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