- Summary:
- PN Gadgil share price opened trading at a premium on Tuesday, but has receded. Despite the IPO oversubscription, this could be time to sell.
PN Gadgil share price subsided on Wednesday, trading at Rs 771 at the time of writing after going down by 2.8 percent. The 192-year-old jeweller listed at the NSE at a premium of 72.9 percent, opening at Rs 834 against an issue price of Rs 480. The IPO ran between September 9-September 12, and was oversubscribed 59.41 X- pointing to the positive sentiment around the company’s growth outlook.
PN Gadgil (NSE: PNGJL) has established itself in the jewellery industry, with 38 stores nationwide. It also has one store in the United States. Its long history of existence points to good management practices, but is also attributable to the jewelry culture deeply embedded in India. The Indian nation is known for its love for gold, which is a cultural symbol of wealth and is widely used as collateral for loans across the nation.
Where next for PN Gadgil share price?
The decline in the PN Gadgil share price on the second day of trading is not surprising, in view of the current trajectory of gold prices in the global market. With the Federal Reserve expected to slash interest rates by as much as 50 bps, demand for gold could rise significantly in the coming days.
A rise in gold prices could drive up gold prices and potentially result in reduced jewellery purchases. Therefore, PN Gadlin share price will likely head downward in the near-term- making a strong case to take profit on the premium listing price. That said, gold prices have recently hit new all-time-highs, which could tempt some traders to sell their holdings and take profit after the Fed interest rate announcement.
PNGJL share price today
The momentum indicators on PNGJL support a continuation of the downside, with resistance persisting at 774.35. In that case, the first support will likely be at 764.60. However, a move below that mark could strengthen the downward momentum to clear the path to test 750.60.
On the other hand, a move above 774.35 will favour the buyers to take control, but they will likely encounter resistance at 785.80. Extended control could enable a break above that mark and invalidate the downside narrative. Also, it could lead to further upward advancements to test 793.55.
