Stock to Buy for Short-Term: Anand Rathi Sees 31% Upside in This LIC-owned Small-Cap NBFC Stock. Do You Own?
Should You Buy Paisalo Digital Shares?
Paisalo Digital shares have been on a downward trajectory, plummeting over 4% on Tuesday, extending its decline for the fourth consecutive session. The stock fell as much as 4.85% to ₹38.20 apiece on the BSE. Despite this decline, intriguingly, Paisalo Digital shares have a strong potential for a rebound. In fact, renowned brokerage firm Anand Rathi has pegged an impressive 31% upside potential in this LIC-owned small-cap NBFC stock. But should you buy Paisalo Digital shares?
Why Anand Rathi is Bullish on Paisalo Digital Shares
Anand Rathi’s technical analysis suggests that Paisalo Digital shares have the potential to bounce back. The stock has declined significantly over the past few months, falling 11% over the past month, 22% year-to-date, 38.5% over the past six months, and 50% over the past year. However, despite this decline, Paisalo Digital shares have delivered impressive returns in the past, rallying 30% in just two years and delivering multibagger returns of 195% in the past five years.
What’s Behind Paisalo Digital’s Plunge?
Anand Rathi attributes Paisalo Digital’s recent decline to a technical correction. The stock had peaked at ₹63.74, and the subsequent decline was a correction of around 25 points, amounting to a 40% drop. The stock has now completed a 1:1 corrective leg near its previous breakout zone, aligning with the S1 Monthly Floor and S3 Monthly camarilla support pivots. This confluence of technical supports suggests a potential reversal.
Buy Paisalo Digital Shares: Anand Rathi’s Recommendation
Based on these factors, Anand Rathi recommends a long position in Paisalo Digital shares at ₹37-₹39 zone. The target price for Paisalo Digital shares is set at ₹50, capitalizing on the potential rebound, while the stop-loss is placed at ₹32 on a closing basis to manage downside risk. The target price implies an upside potential of around 31% from the current market price, with a timeframe of one month for this trade.
A Strategic Setup for Favorable Risk-Reward Ratio
Paisalo Digital’s strategic setup leverage the strong support zones and aims for a favorable risk-reward ratio, making it an attractive bet for short-term investors. With the stock trading at around ₹38.29 apiece on the BSE, now is an excellent time to consider buying into this LIC-owned small-cap NBFC stock, predicting a 31% upside potential.
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 making any investment decisions.
Should You Buy Paisalo Digital Shares?
In conclusion, Paisalo Digital shares have the potential to rebound from its current levels, and we agree with Anand Rathi’s assessment of a 31% upside potential in this LIC-owned small-cap NBFC stock. If you already own Paisalo Digital shares, hold on to them, and if you don’t, now might be an excellent time to buy in. Do you own the stock?
