Street Signs: Nifty above 200-DMA, new-age start-up stocks, and more

NSE issued a list of 61 words brokers are barred from using misleading titles to offer client services they aren't permitted to

Nifty above 200-DMA despite seeing red

Six straight days of losses have seen the benchmark National Stock Exchange Nifty50 Index drop below most of its key daily moving average (DMA). However, the index is still above its 200-DMA, which is somewhere around 17,350. A fall below this level could lead to further weakness in the market, say technical analysts. “The momentum is shifting towards bears. The immediate support for the Nifty is placed at around 17,350, which is also the Budget-day low. In case prices drift below these levels, then 17,050 –17,000 will be on the cards,” says Rohan Patil, technical analyst, SAMCO Securities. In particular, last week’s price action was on the back of low volumes. Perforce, if the trend reverses, the upside could also be sharp.

New-age start-ups: Showboating or staying the course?

New-age start-up stocks have been beneficiaries in the recent market rout activated by the Adani Group narrative. In the past four weeks, PB Fintech, One97 Communications, Delhivery, FSN E-Commerce, and Zomato have gained anywhere between 6 per cent and 20 per cent. By comparison, the BSE 500 Index is down nearly 5 per cent. Valuation comfort, drive to turn profitable, and absence of good buying opportunities are seen as the flint firing up buying interest. “We have to see if this path to profitability is consistent or whether some are playing to the gallery,” cautions an analyst.

What’s in a name? A lot, actually

The National Stock Exchange (NSE) has cracked down on several brokers using misleading titles to offer client services they aren’t permitted to. It came to the exchange’s notice that monikers like fund advisor, capital manager, financial planner, asset/wealth/portfolio management, mutual fund services, wealth advisory services/consultancy/creator, among others, were being used by some entities bearing the licence of a trading member (broker). Last week, the NSE issued a list of 61 such words brokers are barred from using. Those impacted have been given time until March 31 to change their nomenclature with the registrar. This move is part of a series of actions taken by the regulator and exchanges to act against those giving out unauthorised investment advice, observe industry players.