Street signs: Market trend turns positive, Vedant Fashions stock & more

Market trend turns positive

The benchmark Nifty bounced sharply from its low of 15,748 last week to close at 16,630. Technical analysts say the market trend has now turned positive, which could lead to another 2-3 per cent up move in the near term. “Emergence of strong buying demand in the vicinity of the 52-week exponential moving average (EMA) amid oversold conditions and multi sector participation validates the positive stance on the index. We expect Nifty to eventually overcome the immediate hurdle of 16,800 and gradually head towards 17,200 in a couple of weeks,” said ICICI Direct. The brokerage further said any dip towards the 16,200-16,300 region would present an incremental buying opportunity with strong support placed at 15,900 levels.

Dividend trade can gain currency

With the financial year nearing its close, brokerages are advising their clients to focus on high-dividend paying stocks, particularly in the public sector undertaking (PSU) space. “If the LIC IPO doesn’t go through this fiscal year, the government will look for ways to shore up its revenues. One option could be cash-rich PSUs can be asked to dole out dividends over the next few weeks,” said a market expert. He said investors can look to buy stocks like Coal India, NTPC, ONGC, and the three oil marketing companies.

Vedant Fashions’s anchor lock-in ends

Shares of Vedant Fashions are likely to be under limelight on Monday as its 30-day anchor lock-in period ends. Anchor investors hold nearly 10.9 million shares, 4.5 per cent of the total outstanding equity. In the past, shares of companies have corrected following the end of anchor lock-in. Shares of Vedant fell 2.4 per cent on Friday to end at Rs 860, slightly below its IPO price of Rs 866. After listing, the stock has surged to Rs 993. Kolkata-based Vedant Fashions owns brands such as Manyavar, Mohey, and Mebaz. It was India's largest in the men's wedding and celebration wear segment in the financial year 2019-20.