Stock Market Today: SBI, LIC-owned small-cap stock Paisalo Digital share price has gained 25% in one month. Experts see more rally after technical breakout seen by the stock
Technical breakout
Paisalo Digital’s share price has given a short-term technical breakout at ₹53, and the stock looks positive on the chart pattern, said Sumeet Bagadia, Executive Director at Choice Broking. Those with this small-cap NBFC stock in their portfolio can hold long with a strict stop loss at ₹50 for ₹62 and ₹65 targets, said Bagadia
Fresh investors can also buy and hold the scrip for ₹62 and ₹65 targets, maintaining a buy-on-dips strategy. However, they need to keep a strict stop loss at ₹50, as per Bagadia.
Sugandha Sachdeva, Founder of SS WealthStreet said that Paisalo Digital-Shares of Paisalo Digital have rebounded sharply from their October lows near the Rs.40 mark, surging nearly 39%. At this crucial level, the stock has formed a double-bottom pattern on the monthly charts, signalling the potential for continued upside, as per Sachdeva.Substantial volumes during the recovery rally reflect robust investor interest, and the stock is attempting to sustain above its 200-day exponential moving average (DEMA). The formation of higher highs on weekly charts and momentum indicators further reinforces the positive trend.After the sharp jump in the previous session, investors can consider accumulating the stock on dips around the Rs.51 mark while keeping a closing-basis stop-loss at the Rs.43 level. The stock can target around Rs.72-75 in the medium term.
Centrum Stock Broking also had recommended Paisalo. As per Centrum technicals, the stock broke out from double bottom pattern on the daily chart and reclaimed its 50-DMA at 50.60 levels It also negated the formation of a lower top and lower bottom pattern indicating a potential trend reversal. The momentum indicators and oscillators as per Centrum were in a buy mode on the daily as well weekly chart. Based on the above rationale, the upside for Paisalo was open for 58 whereas immediate support is at 49.5 levels, said Centrum
SBI and LIC shareholding
As per the shareholding pattern ending 30 September on the exchanges, State Bank of India held 7729786 shares in Paisalo Digitals translating into 1.23% stake held by SBI in Paisalo
Meanwhile Life Insurance Corporation of India Ltd held 8473644 share in Paisali which translated into 1.35% shareholding in Paisalo
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
