SBI, LIC-backed Paisalo Digital shares jump 25% in a month

Investors are taking a keen interest in share market investment, especially in Paisalo Digital, as the stock has surged 25% over the past month. Backed by major players like SBI and LIC, this small-cap NBFC stock is gaining momentum, reflecting significant market confidence. Let's explore the technical patterns and investment outlook driving its recent growth.

Technical breakout strengthens positive sentiment

Paisalo Digital recently experienced a technical breakout around ₹53, signalling bullish momentum. Investors holding the stock can continue with a cautious stop-loss strategy, maintaining levels around ₹50. Analysts suggest the stock could target ₹62 and ₹65 in the short term, highlighting potential growth for both existing and new investors.

The stock's rise from its October lows near ₹40 marks a robust 39% recovery. A double-bottom formation on the monthly charts hints at sustained upside potential. Significant trading volumes and its ability to remain above the 200-day exponential moving average (DEMA) indicate a strong buying interest and a positive trend reversal.

Key support and resistance levels for investors

Momentum indicators and oscillators show favourable conditions for Paisalo Digital, suggesting opportunities for share market investment. Investors can accumulate shares during price dips around ₹51 while maintaining a stop-loss at ₹43 on a closing basis. The medium-term price targets range between ₹72 and ₹75, making it an attractive option for growth-focused portfolios.

Immediate support is identified at ₹49.50, with a trend reversal negating the lower top and lower bottom patterns. This solidifies the technical case for further gains, with momentum likely to be sustained in the coming weeks.

SBI and LIC's stake in Paisalo Digital

As of 30 September, the State Bank of India held 7,729,786 shares in Paisalo Digital, translating to a 1.23% stake in the company. Meanwhile, LIC owned 8,473,644 shares, representing a 1.35% shareholding. The involvement of these prominent institutions underpins the company's credibility, enhancing investor confidence.

Investment opportunities in Paisalo Digital

The steady recovery and strong technical patterns make Paisalo Digital an appealing choice for share market investment. Its positive performance reflects the growing demand in the affordable finance sector, supported by significant institutional backing. Investors exploring opportunities in small-cap NBFCs can consider this stock as part of a diversified portfolio while adhering to disciplined stop-loss strategies to manage risks effectively.

For those seeking high-growth opportunities, Paisalo Digital's recent performance highlights the importance of staying updated on share market investment opportunities, particularly in dynamic sectors like financial services.