Is the worst over for BluSmart cab parent company Gensol Engineering stock?

Gensol Engineering stock hit the 5% upper circuit for second straight trading session today; this comes after stock crashed nearly 95% in the last 5 months. Here's a technical outlook on Gensol.

Shares of controversy-ridden Gensol Engineering hit the 5 per cent upper circuit for the second straight trading session on Wednesday at ₹46.80. The counter saw trades of around 14,000 shares on the BSE as against the two-week average volume of around 68,000 shares. As of 9.40 AM today, there were pending buy orders for nearly 6 lakh shares at the counter on the BSE.  Kranthi Bathini, Director-Equity strategy at WealthMills Securities recommends the recent pullback as mere 'Dead Cat' bounce, and cautions investors against venturing in such stocks till the time clarity emerges on the business front, and conclusions of the ongoing investigations.  CATCH STOCK MARKET UPDATES TODAY LIVE 

Here's what happened with Gensol Engineering stock over the last 5 months

  The Gensol Engineering stock tumbled nearly 95 per cent from levels of around ₹740 on February 10, 2025, to a low of ₹38.42 on June 30, 2025. The counter witnessed unabated selling over the last five months on the back of a slew of negative news flow.  The fall at Gensol Engineering counter was triggered after lenders - Power Finance Corporation and Indian Renewable Energy Development Agency (IREDA) raised concerns over delayed loan payments. It was also alleged that the promoters were involved in financial misconduct. Thereafter, ratings agencies - ICRA and Care Ratings downgraded the company's ₹2,050 crore debt to default status.  The lenders have now approached the National Company Law Tribunal (NCLT), which in turn served notices to EV ride-hailing firm BluSmart Mobility and Gensol Engineering in connection with the insolvency pleas.  Delhi-based BluSmart Mobility, cab-hailing start-up BluSmart, is another company promoted by the Jaggi brothers. Anmol Singh Jaggi and Puneet Singh Jaggi are the promoters of both - Gensol Engineering and BluSmart Mobility.  ALSO READ | How to trade 5 worst performing stock of H1 2025  In an alarming development an investigation by the market regulator, the Securities Exchange Board of India (Sebi), revealed that the promoters - Jaggi brothers - Anmol Singh Jaggi and Puneet Singh Jaggi - were accused of misleading disclosures, fraudulent trades, fund diversions.  The 'Jaggi brothers' held over 96 per cent stake in the company in September 2019; post the ₹18 crore IPO, the holding was reduced to 70.72 per cent in July 2023. As of date in less than two year’s time, the promoters collectively hold 35.87 per cent stake, shows BSE data. READ MORE  Sebi has since barred the 'Jaggi brothers' from accessing the securities market till further orders. Meanwhile the Enforcement Directorate too conducted search operations at various company premises and have detained the brothers. 

Gensol Engineering

Current Price: ₹46.80 Likely Target: ₹67.10  Upside Potential: 43.4%  Support: ₹38  Resistance: ₹47.76; ₹61.35  Technically, Gensol Engineering stock is trading in an extremely oversold zone given the astronomical 95 per cent stock price crash. Having said that, select momentum oscillators have turned favourable for the stock on the daily and weekly time-frame, following the recent back-to-back upper circuits.  ALSO READ | CDSL stock eyes 'cup and handle' pattern breakout; can it hit ₹3,000-mark?  Hence, from a technical stand-point a pullback at the counter seems likely. For now, support for the stock can be anticipated around the recent lows of ₹38 levels.  Gensol stock seems on course to test its 20-Day Moving Average (20-DMA), which stands at ₹47.76 levels. Break and sustained trade above the same, can see the stock extend the rally towards the 50-DMA at ₹61.35 levels. CLICK HERE FOR THE CHART  The real-test for the stock will be the weekly trend line resistance, which stands at ₹67.10 levels - this suggests that the stock could rise up to 43.4 per cent from present levels.