Missed share allocation in Tatva Chintan? Should you buy now?

At current levels, fresh buying is not advisable. But, there would be profit booking taking place in next few trade sessions, say experts. Photo: Company website

1 min read . Updated: 29 Jul 2021, 12:18 PM IST Asit Manohar

Those who missed to get Tatva Chintan shares during allotment, they have another option of buying the chemical stock from the open market

Tatva Chintan shares got listed today at NSE and BSE delivering more than 100 per cent listing gains to the lucky subscribers. However, this was good news for selected subscribers of the public issue as it was subscribed more than 180 times of its offer. So, those who missed to get Tatva Chintan shares during allotment, they have another option of buying the chemical specialty stock from the open market. But at what levels? The stock is already trading above 100 per cent premium and has made intraday high of ₹2534 — near to its 20 per cent upper circuit at NSE.

Speaking on the levels where one can buy Tatva Chinta shares from the open market; Ravi Singhal, Vice Chairman at GCL Securities said, "At current levels, fresh buying is not advisable. But, there would be profit booking taking place in next few trade sessions and the chemical stock is expected to come around ₹1700 to ₹1800 per stock levels. I would recommend fresh entry at these levels maintaining stop loss at ₹1500. But, this will be a positional call and one should keep the stock for at least 6 to 9 months after taking position in this stock."

Standing in sync with Ravi Singhal's views; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "One should avoid fresh buying at current levels as it is already more than 100 per cent of its issue price. But, one should also keep in mind that it's not going to correct too fast as its fundamentals are quite strong and its earning are also looking promising compared to its peers like Divi's Lab. But, profit-booking is definitely expected and one should stat accumulating from ₹1950 levels and continue doing this till ₹1700 mark."

On advice to those who got Tatva Chintan shares allotted; Ravi Singhal of GCL Securities said, “Since, they are getting more than 100 per cent listing gains, I would advise them to book 50 per cent profit, fish out their principal and remain invested in the stock with their listing gains for at least 6-9 months."

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