Street signs: Nifty faces stiff resistance at 12,000-point level

Nifty faces stiff resistance at the 12,000-point level and if it crosses the level, it could head to 12,300, say experts. On Thursday, the 50-share benchmark index for the first time pierced that level before succumbing to huge selling pressure, which brought down the Nifty from 12,041 to below 11,700. The index on Friday closed at 11,844. “Despite the election euphoria, Nifty may not find it easy to cross 12,000 unless there is strong positive news flow both on global as well as the domestic front,” said an analyst adding that the index has strong support at 11,500 on the downside.

Sundar Sethuraman 

Bajaj Finance on FPI radar

Shares of Bajaj Finance have jumped 20 per cent in the past eight trading sessions after the company posted strong March quarter earnings. Industry observers say, the stock is on the radar of foreign portfolio investors (FPIs), with some even likening the stock to HDFC Bank.  According to a fund manager, Bajaj Finance is now being reckoned as one of the best “growth stock” just like how HDFC Bank is regarded. "Given the scarce availability of HDFC Bank stock for FPIs, they will now turn to Bajaj Finance despite its multi-year high valuation," he said. Experts say with more room for FPI holding, the stock could keep buzzing. 

Hamsini Karthik 

Arbitrage prospect in Reliance AMC
 

Traders are eyeing arbitrage gains in the Reliance Nippon Life Asset Management (RNAM), where Reliance Capital is divesting its holding through an offer for sale (OFS) at Rs 218, while Japan’s Nippon Life is buying shares through an open offer at ~230. "Savvy traders are looking to buy shares in the OFS on Monday and later tender them in the open offer,” said a broker. The potential returns through this trade work out to about 5 per cent. “There is a high possibility that the share will get accepted in the open offer. Even if they don’t, buying shares of RNAM at current levels could still be a good bet as a change in promoter could lead to some valuation re-rating,” added the broker.  

Jash Kriplani