RBZ Jewellers share price hits upper circuit after par listing. Time to book profit?

RBZ Jewellers share price listed on Indian excghanges during special open session on Dalal Street. RBZ Jewellers share price opened on NSE and BSE at ₹100 and went on to touch 5 per cent upper circuit of ₹105 within few minutes of their listing. However, on BSE, the newly listed jewellery stock first touched 5% lower circuit of ₹95 before rising to its intraday high of ₹104.99 apiece levels.

According to stock market experts, RBZ Jewellers IPO was offered at higher valuations and hence it is expected to witness selling pressure on rise. They went on to add that the stock has listed in trade-to-trade category, which means it will have lower volume in first ten sessions. Apart from this, the stock is small in size which means it may move either side on single trigger and may remain circuit to circuit stocks on Dalal Street in upcoming few sessions.

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RBZ jewellers share price outlook

Speaking on RBZ Jewellers share price listing, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "RBZ Jewellers shares have listed in trade-to-trade category, which means trade volume in the scrip would remain low. At the same time, stock size is small that signals movement on either side on small trigger. So, I am expecting this stock to emerge as one of the circuit to circuit stocks in upcoming sessions. So, I would suggest allottees to book profit and exit as they are already getting profit on their money."

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On why RBZ Jewellers share price touched circuits on both side on BSE, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "RBZ Jewellers IPO was offered at higher valuations and it has been listed in T group of securities. So, this stock won't be available for traders. Therefore, it is one of the high risk stocks that is not suitable for a normal retail investor. So, my advice to allottees is to book profit and exit. There are other better stocks in same segment, which they can look at."

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 decision.