I would create two separate sketches one in the ram part and one in the punch part, each would have a vertical line for a coincident mate. Then I would use the limit dimension for the vertical up and down movement and the third mate would be a parallel mate, between the ram and punch..
You can do what you want using the Motion Study. This would work well for creating a video to demonstrate the motion and function, but it doesn't work for free dragging like I suspect you want to do.
Can you create a cam motion to control this and then hide the cam parts?
If it just moves up and down in a specific manner, I'd use a limit mate.
Steve C