Street Signs: All eyes on Delhivery, Nifty new high on cards & more

Nifty new high on cards

The benchmark Nifty snapped its four-week gaining streak last week ending at 18,308. Technical analysts say the index has a strong chance of surpassing its previous all-time high so long as it trades above its key support level of 18,050. “The momentum readings are still in buy mode and have not given any negative crossover since the past few weeks. 

If we look at the derivatives data, the long positions in the index are still intact. Foreign portfolio investors, too, have a majority of their positions on the long side in the index futures segment,” says Ruchit Jain, lead research analyst, 5Paisa. The all-time closing high for the Nifty is 18,477 registered on October 18, 2021. In the recent trading session, the index has faced stiff resistance around 18,400 levels.

All eyes on Delhivery, Five Star

Shares of logistics firm Delhivery and micro lender Five Star Business Finance are likely to be in focus on Monday. In the case of Delhivery, the after-initial public offering (IPO) lock-in on nearly Rs 21,000 crore worth of shares is available for sale. SoftBank is the largest shareholder in the company with 18.5 per cent stake. 

Shares of Delhivery have already dropped nearly 40 per cent in the past month. Experts say the stock could bounce back once the initial selling pressure by pre-IPO shareholders is over. Meanwhile, Five Star Business makes its stock market debut on Monday. It had to cut its offer for sale component to ensure its IPO sails through. Its IPO cornered just 70 per cent subscription, even as it attracted some first-rate anchor investors.

Bajaj Holdings holdco discount may well narrow

Bajaj Holdings & Investment was recently in the news after its stock got added to the Morgan Stanley Capital International Standard Index. The company is a holding company (holdco) of Bajaj Group, with significant stake in Bajaj Auto and Bajaj Finserv. Being a holdco, it trades at over 50 per cent discount to its intrinsic value. However, analysts believe there is a case for narrowing of this discount. 

“We believe this holdco discount can narrow with greater ownership and visibility after the likely index inclusion. We note that a further 10 per cent narrowing of the discount can result in a stock upside of 21 per cent, assuming investment values stay stable,” says insight provider Devi Subhakesan of Investory in a note.