Stock Market: Ather Energy’s Bullish Run Faces RSI Warning

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As Ather Energy trades above its 50-day EMA, analysts flag a potential profit-booking phase—though long-term investors see dips as buying opportunities.

By S JHA

Mumbai, October 8, 2025 — Electric two-wheeler maker Ather Energy has been powering ahead in India’s EV market, but analysts are beginning to spot early signs of a potential short-term correction.

According to StockEdge, Ather Energy’s stock is “charging up the charts” with strong momentum, trading comfortably above its 50-day EMA at ₹632. However, a bearish RSI divergence has formed, indicating that profit booking could emerge.

The stock has gained 10% in just five days of trades. Shares of Ather Energy gained 20% in one month time frame, while it doubled in six months. The EV theme in the stock market has been playing out for a few months.

“Momentum indicators remain robust — with a 1-month score of 98/100 and a 3-month score of 92/100 — suggesting that bullish strength is still intact. Yet, such high readings often precede temporary pullbacks,” claimed StockEdge in its analysis shared on Telegram channel.

On the fundamental front, Ather reported ₹644.6 crore in net sales in Q1 FY26, while narrowing its losses with EBITDA at ₹-134.3 crore and PAT at ₹-178.2 crore, reflecting improved cost control and operational leverage.

The Bengaluru-based startup, incubated at IIT Madras, continues to maintain a double-digit EV market share, expand its charging infrastructure, and grow non-vehicle revenues from services and accessories.

Investor sentiment on social media remains upbeat. B. Pathak, a market observer, wrote on X (formerly Twitter), “Highly impressed after reading Ather’s 2025 annual report. A startup from IIT Madras is doing wonders.” Trader Kaushal Thapa added, “The setup looks excellent — above key EMA levels with clean price action. I’ve entered at ₹608 with a tight stop loss.”

Still, analysts warn of rising costs, supply chain pressures, and high valuations, which could invite short-term corrections.

The consensus view: Ather’s long-term EV growth story remains strong, and for patient investors, any dip may be an opportunity to accumulate.

(This article makes no recommendation for buy or sell of shares of any company)