Nykaa shares dip over 5% today, a day after stellar listing. Should you buy?

Market


A day after stellar listing at near 79 per cent premium, Nykaa share price today dipped over 5 per cent in early morning deals. Nykaa shares today opened with an upside gap of 7.90 but soon witnessed profit-booking that led to slide in the e-commerce company stock. Nykaa shares hit intraday low of 2,043.75, which is more than 5 per cent lesser from its yesterday’s close price of 2205.80 per shares.

According to stock market experts, this profit-booking may further continue and Nykaa share price may further go down up to 2000 to 1800 levels. They advised investors to either buy at around 1900 levels or start accumulating stocks in calibrated manner from now onwards.

Advising stock market investors to start accumulating Nykaa shares from now onwards; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Valuation could be a concern for Nykaa shares after a big listing gain. However, 2000 could act as a support level in the near term. It is difficult to buy after a big gain at opening however fresh investors can accumulate in parts where they can invest 25 per cent at current levels while if it witnesses any correction towards 1800 level then they can add more.” Santosh Meena went on add that those who were playing for listing gain can keep a stop loss of 1950 and advised aggressive investors to hold this stock for the long term.

Unveiling one time investment strategy in Nykaa shares; Ravi Singhal, Vice Chairman at GCL Securities said, “This dip in Nykaa shares should be seen as profit-booking after strong listing and this may further continue for 1-2 trade sessions. Nykaa shares may go up to 1900 per share levels in immediate short-term, where one can buy for long-term. One can buy Nykaa shares at 1900 levels for two year target of 3600 maintaining stop loss at 1770 levels.”

Ravi Singhal of GCL Securities said that fundamentals of the company are quite strong and its market capitalization is still around 1 lakh crore after this huge dip in Nykaa share price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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