In a generally sluggish market, the share price of CarTrade Tech rose by 4%; here is why

 In a generally sluggish market, the share price of CarTrade Tech rose by 4%; here is why

Following the decision by Sobek vehicle India Pvt Ltd, the company's fully owned subsidiary, to cease its own C2B activities of the vehicle transaction industry, the share price of CarTrade Tech increased by about 4% during Wednesday's trading session. Today's BSE opening price for CarTrade Tech shares was an intraday low of $619.20 per share. The stock price of CarTrade Tech reached an intraday high of 640.70. CarTrade Tech shares were trading at 630.35 at 13:49 IST, up 2.30 percent.

In view of the financial difficulties the business was experiencing, the Sobek Auto India board of directors made the decision to shut the division, according to a filing with the exchange by CarTrade Tech. Sobek plans to increase the scope of its Classified business (Olx.in), which will now include non-auto verticals as well as automotive ones.

"The Board of Directors of Sobek at their meeting that was held today i.e. on October 25, 2023 made the choice to close down their own C2B operations and reduce human resource as well as administrative cost of the said business while exploring partnerships with other players for the same," the company stated in a filing with the exchange.

On July 10, CarTrade Tech said that it has signed a share purchase agreement with Sobek Auto India Private Limited and its parent firm OLX India BV to buy a 100% interest in Sobek for $537.43.

The classifieds division of Sobek (Olx.in), which covers both the automotive and non-automotive sectors, demonstrates profitability and has great future development potential. Sobek has made the decision to concentrate its efforts and resources on the classified sector in view of the huge potential for long-term development and wealth creation.

OLX Classifieds is a significant player in the Indian classifieds sector with more than 100 million app downloads to its credit. It offers a wide variety of services in 12 distinct categories, including real estate, technology, autos, and more, according to the filing.

According to trendlyne statistics, the stock price of CarTrade Tech increased by 4.12% and lagged its industry by 11.56% over the last year. 

In spite of the gloomy market environment, the stock price of CarTrade Tech is showing resilience and is up around 3%, according to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One. 

Technically speaking, prices are also in a cycle of higher top, higher bottom prices, and a recent price correction has coincided with a general market decline. While 680–690 seems to be a resistance zone, 610–600 appears to be a strong support zone.