1. Tata Technologies IPO Impact: The recent IPO of Tata Technologies, conducted as a 100% Offer for Sale (OFS), generated enormous market enthusiasm. However, according to Avinash Gorakshakar, Chief Research Analyst at Profitmart Securities, this IPO's success might not necessarily affect the overall group companies, implying caution in buying Tata Technologies shares amidst this post-listing fervor.
2. Evaluation of Tata Technologies' Share Price: Avinash Gorakshakar also highlighted that post a robust performance by the Tata group, trading at high valuations, there's a slight dip in Tata Technologies' valuation post its IPO success. Therefore, the potential for further growth in Tata Technologies shares might be limited for now.
3. Stock Price Exhaustion: Arun Kejriwal, Founder of Kejriwal Research & Investment Services, mentioned that Tata Technologies shares have fallen below the support level of ₹1299. Hence, an expectation exists for continued selling pressure, making it advisable to wait for post-listing enthusiasm to stabilize before considering buying this stock.
4. Overcrowded Primary Market: Arun Kejriwal further added that India's current primary market is overcrowded, hinting at an imminent correction. Consequently, the expectation is for selling pressures once IPO market sentiments decline, affecting all listed stocks.
5. Stock Market Optimism: Kejriwal also connected the optimistic market sentiments to Tata Technologies and several other public issues, suggesting caution amidst a trend where many Indian indices operate near record highs or lifetime peaks. Hence, it might not be an ideal time for new entries. He recommended waiting for new investors to book profits or a possible trend reversal in the Indian stock market.
Disclaimer: Opinions and suggestions provided are personal views of financial analysts or brokerage firms and not affiliated with GMT Academy. Prior to making any investment decisions, consulting certified financial advisors for expert guidance is advisable for investors.
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