After correcting nearly 40% against issue price, Paytm stocks surge 10%; what should investors do? Experts take

Paytm stock price showed a bounce back on Tuesday after correcting 40% on its issue price in two back-to-back trading sessions post-weak listing. Shares of Paytm, India's largest IPO so far, had listed on the BSE at a 9% discount to Rs 1,955 per share against its issue price of Rs 2,150 on Thursday last week.

The shares fell as much as 18.16% or Rs 284.00 to Rs 1280.15 on its second day of trading despite positive Q2 data.  

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On Tuesday, shares surged 10% to day's high of Rs 1494.00 per share. At around 10, Paytm stocks were trading with a gain of Rs 124.70 or 97% to Rs 1485.00 per share.  

As the shares have bounced quite strongly on Tuesday, what should investors be doing now? How should they approach these stocks? Buy, sell or hold? what should they do in this counter. Here is what market experts say about the Paytm stocks:  

'Opportunity to exit'

Ravi Singhal, Vice Chairman at GCL Securities, said this is an opportunity to exit. "Paytm shares are still looking weak and it may go down up to Rs 1,000 to Rs 1,100 per share levels. Those who have Paytm shares in their portfolio are advised to take this bounce back as an opportunity to exit and enter at around Rs 1,000 to Rs 1,100 per share levels for 12-15 months target of Rs 2150, maintaining stop loss at Rs 800 per stock levels," said Singhal.
Add Paytm shares only when it is in Rs 1,000 to Rs 1100 range, otherwise look at other option instead of adding Paytm shares in your portfolio, he said.

'Hold- Can be a buying opportunity'

"Investors, who are stuck, should wait as there is a small buying being seen once. One may expect consolidation around the price of Rs 1200-1350 per share, which can be a buying opportunity considering base formation," said Manoj Dalmia, Founder and Director, Proficient equities Private limited.  
Dalmia recommended to 'hold' for a few quarters and wait for expected results. "This might trigger some buying action from FII, DII and price may rise. Recommend to exit at a breakeven price, " he added.

'Be cautious, enter only when sentiments see reversal'  

Ravi Singh, Head of Research & Vice President, ShareIndia, said the current market scenario, where the benchmark indices are in a profit booking zone, Paytm share prices may remain subdued and weak for some more time. "It may touch the level of Rs 1150 per share before fresh buying triggers. We advise investors to be cautious and enter only when sentiments turn around," said the analyst.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)