 "Street signs: Markets may correct for now, Heranba's GMP at 25%, and more")
Markets may correct for now
The benchmark indices have corrected for four straight days. If technical analysts are to be believed, the markets look poised to extend their losing streak. “A reasonable negative candle was formed with minor upper and lower shadow. Technically, this pattern indicates a continuation of weakness amid a range movement or volatility,” says Nagaraj Shetti, technical research analyst, HDFC Securities. The Nifty50 index on Friday ended 14,982. “A decisive move below 14,950 could result in more weakness down to 14,700-14,500 levels in the near term. Immediate resistance is placed at 15,115,” adds Shetti.
Fall in gold prices may boost ETF flows
The fall in gold prices may be a boon for the gold ETF category, which has seen inflows of over Rs 1,000 crore in the past two months. Gold prices slipped below the crucial Rs 46,000 per 10 gm in the futures market on Friday, to hit an eight-month low amid a rise in the US Treasury yield, stronger dollar, and vaccination drive. Prices are down about 18 per cent from the highs witnessed in August 2020. The correction, along with expectations that gold may do well going forward, may provide a good buying opportunity to investors, said some analysts. The risk of a second wave of coronavirus, easy liquidity, and global economic recovery will dictate gold prices.
Heranba’s GMP at 25%
Agrochemical firm Heranba Industries’ shares are trading at 25 per cent premium in the grey market, said people in the know. The company’s Rs 625-crore IPO opens for subscription on Tuesday. The price band for the IPO has been set at Rs 626-627 per share. The issue comprises Rs 60 crore of fresh fundraise and Rs 565 crore of offer for sale. At the upper end of the IPO price band, the IPO is priced at nearly 23x its trailing 12-month earnings. Heranba will have a market cap of Rs 2,509 crore at the top-end of the price band.
The benchmark indices have corrected for four straight days. If technical analysts are to be believed, the markets look poised to extend their losing streak. “A reasonable negative candle was formed with minor upper and lower shadow. Technically, this pattern indicates a continuation of weakness amid a range movement or volatility,” says Nagaraj Shetti, technical research analyst, HDFC Securities. The Nifty50 index on Friday ended 14,982. “A decisive move below 14,950 could result in more weakness down to 14,700-14,500 levels in the near term. Immediate resistance is placed at 15,115,” adds Shetti.
Fall in gold prices may boost ETF flows
The fall in gold prices may be a boon for the gold ETF category, which has seen inflows of over Rs 1,000 crore in the past two months. Gold prices slipped below the crucial Rs 46,000 per 10 gm in the futures market on Friday, to hit an eight-month low amid a rise in the US Treasury yield, stronger dollar, and vaccination drive. Prices are down about 18 per cent from the highs witnessed in August 2020. The correction, along with expectations that gold may do well going forward, may provide a good buying opportunity to investors, said some analysts. The risk of a second wave of coronavirus, easy liquidity, and global economic recovery will dictate gold prices.
Heranba’s GMP at 25%
Agrochemical firm Heranba Industries’ shares are trading at 25 per cent premium in the grey market, said people in the know. The company’s Rs 625-crore IPO opens for subscription on Tuesday. The price band for the IPO has been set at Rs 626-627 per share. The issue comprises Rs 60 crore of fresh fundraise and Rs 565 crore of offer for sale. At the upper end of the IPO price band, the IPO is priced at nearly 23x its trailing 12-month earnings. Heranba will have a market cap of Rs 2,509 crore at the top-end of the price band.
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