Swiggy shares surge 5% as Blinkit’s Q1 spurs optimism in Q-comm sector

Shares of Swiggy rose 4.9% to Rs 412 on Tuesday, driven by increasing investor confidence in the online food delivery and quick commerce sectors. The rise followed a significant 15% gain in peer company Eternal, which hit a record high of Rs 311.6 after strong Q1 results, particularly from its quick commerce segment, Blinkit.

While Swiggy itself did not release any company-specific updates, the sharp gains in Eternal’s shares lifted the entire sector’s sentiment. Eternal’s standout quarter highlighted Blinkit’s rapid growth—now surpassing Zomato in Net Order Value (NOV)—and prompted brokerages to upgrade their outlooks. Notably, Jefferies upgraded Eternal to a Buy with a target price of Rs 400, citing its underestimated competitive position and significant growth runway.

“Eternal represents a key play in India’s expanding food services market and digital commerce adoption,” Jefferies noted. “Blinkit is set to lead the quick commerce segment and achieve meaningful margin improvement over time.”

With only about 23 million monthly transacting users, Eternal still has ample room to grow, fueling investor enthusiasm. This optimism spilled over to Swiggy, which investors see as another major beneficiary of the expanding quick commerce and food delivery market in India.

Swiggy’s Technical Outlook: Signs of Strength and Momentum

Technically, Swiggy is showing solid bullish signals. The daily Relative Strength Index (RSI) stands at 60.8, indicating the stock is gaining strength but is not yet in overbought territory (which is typically above 70). An RSI in this range suggests healthy buying interest without excessive short-term risk.

Further reinforcing the positive outlook, Swiggy is currently trading above all seven key Simple Moving Averages (SMAs) — from the short-term 5-day SMA to the long-term 150-day SMA. This clean sweep of moving averages is widely regarded by technical analysts as a strong indication of sustained upward momentum.

If this trend continues and trading volumes support the move, Swiggy could potentially experience further price gains in the near term.