The latest leg of the rally came after Ola Electric announced on September 14 that it had filed claims under the government’s Production Linked Incentive (PLI) scheme for its Gen 3 scooter range. The scheme provides incentives of 13–18% on sales value until 2028, which analysts say could materially lift margins from the second quarter of FY26.
Khushi Mistry, research analyst at Bonanza, said that “recent policy moves now offer clearer, near-term advantages for Ola Electric versus Ather Energy. The GST Council has formally retained a concessional 5% GST on electric vehicles, easing price pressure across the sector. More materially, Ola secured PLI certification for its Gen-3 scooter portfolio in late August, making a large share of its models eligible for incentives that management says will bolster margins from Q2FY26.”
Earlier in September, Ola Electric also reported improved financial performance, with gross margins rising to 25.6% in Q1 FY26 from 13.8% in the previous quarter, alongside a positive EBITDA margin. The operational gains reinforced investor confidence in the company’s path to profitability.
The broader electric two-wheeler segment has also attracted attention, with new product launches and battery technology improvements drawing inflows into the stock through August and September.
Technical signals mixed
Despite the rally, analysts remain divided over the near-term trajectory.
Drumil Vithlani, technical research analyst at Bonanza, noted that “the stock is in a healthy consolidation after a sharp rally. As long as it holds above Rs 52–56, the bias stays positive. A decisive close above Rs 62 would be the next trigger for upside momentum.”
Vithlani said that support lies at Rs 56 (20-EMA) and Rs 52 (previous breakout zone), with potential downside to Rs 48 if those levels are breached. Resistance levels are seen at Rs 62 and Rs 68–70, with a close above Rs 70 opening “room towards Rs 75–78 in the short term.”
Kunal V Parar, vice president of technical research and algo at Choice Broking, highlighted a more cautious view. “On the daily chart, the stock is trading above its 100-day moving average, indicating that the overall trend remains positive,” he said.
However, Parar pointed out that “a Dark Cloud Cover candlestick pattern has emerged, signaling the possibility of a short-term correction. Supporting this view, the daily RSI is hovering around Rs 55 with a negative crossover, pointing towards weakening momentum in the near term.”
Parar said that “we anticipate a short-term correction in the stock towards the Rs 48 level. From that support zone, a strong rebound can be expected, potentially taking the stock higher towards the Rs 70–80 range, with a strict stop loss at Rs 40.”
The stock is currently trading above five of its eight key simple moving averages (20-day, 30-day, 50-day, 100-day and 150-day), while it remains below the 5-day, 10-day, and 200-day SMAs. The Relative Strength Index stands at 58.1, indicating neutral conditions, while the MACD is at 3.6, above the centre line but below the signal line, suggesting a pause in momentum.
Also read | Ola Electric vs Ather Energy shares: Which EV bet looks stronger for your portfolio right now?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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