Swiggy is seeing FII, mutual fund buying, for the third consecutive quarter. Time to buy the dip?

Swiggy has been attracting steady interest from major institutional investors, including Foreign Institutional Investors (FIIs) and Mutual Funds (MFs). When such institutions consistently increase their stake in a company, it often reflects strong confidence, as these investors typically commit capital only after detailed research. Retail investors often keep a close eye on these trends to identify potential opportunities.According to the latest shareholder data for the December 2025 quarter, both financial institutions and financial institutions have increased their stake in Swiggy. FIIs increased their holdings from 12.23% to 16.07%, marking the third consecutive quarter of growth. Meanwhile, mutual funds increased their holdings from 11.89% to 17.23%, continuing a trend that has lasted five consecutive quarters. Notably, MFs have never reduced their stake in Swiggy since its IPO in November 2024, which is a sign of long-term confidence in the company.

Despite this institutional interest, Swiggy’s shares have underperformed over the past year. They fell by around 30% and are currently trading at Rs 344, below the IPO price of Rs 390. This highlights the contrast between short-term market performance and long-term institutional confidence.On Monday, as of 1:05 PM, shares of Swiggy fell 2.20% to Rs 343.85, with a market capitalization of around Rs 94,885 crore.

Data from Trendlyne forecasters shows 25 analysts giving Swiggy a consensus ‘BUY’ rating, with a target price implying a 42% upside from current levels.

On a technical level, the 14-day Relative Strength Index (RSI) stands at 28.7. In technical analysis, an RSI below 30 is generally considered oversold, meaning the stock has been sold excessively in the short term. This condition often signals a potential buying opportunity, as the stock can rebound once selling pressure subsides.

However, the stock’s moving averages paint a more cautious picture. Swiggy is currently trading below all eight major Simple Moving Averages (SMAs), a situation that generally indicates a bearish trend in the short to medium term. Simply put, the stock price is lower than the average price over different time frames, indicating downward momentum. On the financial front, although the December 2025 quarterly results are not yet known, the previous quarter (September 2025) provides insight into the company’s performance. Swiggy reported revenues of Rs 5,620 crore, growing 52.5% year-on-year, demonstrating strong revenue momentum. However, net loss widened to Rs 1,092 crore, due to continued heavy investment in operations and expansion.

Key takeaway: While Swiggy’s shares have underperformed of late, consistent increases in stakes by financial and financial institutions indicate strong institutional confidence. Retail investors may want to consider keeping an eye on the stock for potential long-term opportunities, especially if upcoming quarterly results show improvement or if technical indicators point to a recovery.

Also read | ICICI Prudential India Opportunities Fund turns Rs 10,000 SIP into over Rs 20 lakh in 7 years

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)