BackUpdater Services share price rebounds after opening at discount. Buy, hold or exit?
Updater Services share price may go down towards ₹270 per share levels, if it breaches ₹290 levels in near term, say stock market experts
PremiumStock market today: Updater Services IPO today listed on Indian bourses at 5 per cent discount. Updater Services share price opened on NSE at ₹285 per equity share but it witnessed sharp upside after discounted listing and hit intraday high of ₹298.65 apiece, paring almost losses of the allottees that they incurred after listing.
According to stock market experts, this rebound in the stock can be a good time to exit as stock was aggressively priced and it is expected to trade weak for some time. They advised allottees to maintain stop loss at ₹290 and wait for some further rebound.
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Speaking on Updater Services share price outlook, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "There is nothing wrong with fundamentals o the company. Its evaluation that went against the public issue. Then public issue was aggressively priced while fair value of the Updater Services share price comes around ₹270 apiece levels. So, this rebound should be seen as an opportunity to exit and look at other quality stocks till it comes down towards its fair value of ₹270 levels."
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Updater Services share price outlook
On suggestion to allottees after discounted listing of Updater Services shares, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "The public issue was priced at high valuations and this rebound has given an opportunity to minimise one's losses. Allottees can wait for next one to two hours for some more upside. But, they must maintain stop loss around ₹290 apiece levels as the stock has witnessed limited trade volume post-listing." He said that aggressive allottees may hold the stock for next three four days if ₹290 stop loss doesn't trigger. However, he maintained that Updater Services share price will become very weak once it hits ₹290 stop loss during Wednesday deals.
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Updater Services IPO price band was set in the range of ₹280 to ₹300 per equity share of face value of ₹10. Chennai-based Updater Services IPO opened for subscription on Monday, September 25, and closed on Wednesday, September 27.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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