“Analyzing Jio Financial Services Ltd (JFSL) Stock: Exploring Options Amid 5% Lower Circuit Post Muted Listing”

Shares of Jio Financial Services Limited (JFSL) fell 5% off the circuit after the general listing. Buy, sell or hold? Please take 2 minutes to read 08/21/2023, 11:
40:00 IST.

According to securities experts, the share price of Jio Financial Services is trading at nearly Rs 180, well above fair value.

Following the separation from Reliance Industries Limited (RIL), the share price of Jio Financial Services was listed on the BSE and NSE in Monday trading. However, JFSL’s shares faced slow trading on the Indian stock market as the share price opened at Rs 265 on BSE and Rs 262 on NSE, close to its market value from 261, Rs 85 (by JFSL date). However, the pain for shareholders doesn’t end there; it fell to ₹248.90 on the NSE and ₹251.75 on the BSE, hitting 5% lower on both exchanges.

According to market experts, the fair value of Jio Financial Services shares is around Rs 180 and there is a chance that the market will correct further as the shares are currently trading at much higher than fair value. . Based on fair value, the market capitalization of Jio Financial Services Limited is expected to be around ₹1.15 lakh crore, compared to ₹1.10 lakh crore currently. Therefore, holders of JFSL stock should book profits on any rally and return to the ₹180 mark.

Regarding Jio Financial Services share price drop after listing, Vaibhav Kaushik, Research Analyst at GC Broking, said: “Jio Financial Services share price has been expected to correct due to stock. traded at a substantially higher than fair value. However, the market was anticipating a recovery after hitting levels somewhere between ₹330 and ₹340. But it seems index funds have decided to take profits instead of waiting for institutional investors to intervene.

Regarding the Jio Financial Services stock quote, Chandan Taparia, Technical and Derivatives Analyst at Motilal Oswal, suggested: “For those who have already received shares of Jio Financial Services, it is advisable to hold the stock at a premium. stop loss at each Rs 232.”

Jio Financial Services Limited (formerly known as Reliance Strategy Investments Limited) has been approved for listing by T Group of Securities for stock trading. The share price of Jio Financial Services Limited will be for the exchange-traded segment for 10 trading days. To sum up, Jio Financial Services shares face a dip below the circuit after the general listing. Experts think the fair value of the stock is around ₹180 and it is possible that the market will correct further. Shareholders should consider booking a profit and return around ₹180. The drop in share price after listing can be attributed to index funds’ expectation of profit taking.

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