Cupid Shares Surge 9% on Bargain Hunting Amidst Volatility

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AuthorVihaan Mehta|Published at:
Cupid Shares Surge 9% on Bargain Hunting Amidst Volatility
Overview

Cupid Ltd. shares bounced back nearly 9% on Tuesday, recovering from a steep sell-off triggered by a large block deal. Bargain hunters stepped in as the stock entered oversold territory. Despite positive business outlook and order book, analysts warn of continued volatility due to momentum trading.

Cupid Ltd. shares surged 8.90% to ₹424.75 on Tuesday on the Bombay Stock Exchange (BSE), halting a significant downturn. This rebound follows aggressive profit-booking triggered by a large block deal that sent the stock to a one-month low in the previous session.

Technical Rebound Amidst Caution

Market participants attributed the recovery to bargain hunting and short-covering. The stock had entered oversold territory following its sharp correction, prompting short-term traders to re-enter at lower levels. Analysts, however, caution that volatility remains elevated. Price action is heavily influenced by block deals and momentum-driven trading, suggesting sustained recovery is contingent on further buying and broader market stability.

Underlying Business Momentum

Despite the trading-related volatility, investors are closely watching Cupid's fundamental business outlook. The company has previously highlighted strong demand momentum and a healthy order book. Management guidance points towards robust revenue growth for the current financial year, with projections that the December quarter could be the company's best performance to date.

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