Street signs: Nifty in bullish territory, HNIs look to break even, and more

Nifty in bullish territory

The benchmark Nifty on Friday managed to breach 10,800, its 200-day moving average (DMA), a key technical barrier it has been struggling to top. Analysts say this has given impetus to the markets and the 50-share Nifty could be headed towards 11,200 levels. “One may expect further upside in the coming sessions. The next level to be watched is around 11,250, which is an opening downside gap of March 5. Immediate support is placed at 10,850. However, having stretched its uptrend above the resistance, one needs to be cautious of longs at the highs, as there is a possibility of a reversal from the highs,” said Nagaraj Shetti – technical & derivative analyst, HDFC Securities. The Nifty on Friday ended at 10,902, the highest close since March 6.

Samie Modak

HNIs look to break even

Rossari Biotech will make its stock market debut this week following a hugely successful IPO, which saw 80 times subscription. While the stock is expected to do well on debut, it remains to be seen if high net-worth individuals (HNIs) will break even. Wealthy investors have placed leveraged bets worth nearly Rs 18,000 crore. After factoring in the interest cost, HNIs will make money on the IPO only if shares list at a premium of more than 30 per cent. While grey market activity had indicated that the stock will list at that premium, any change in market sentiment could alter the equation.

Sundar Sethuraman

PMS providers brace for volatility

Portfolio management service (PMS) providers have told clients to look at the current market rally with caution and brace for volatility. In a monthly communication, a large PMS player told its clients that it would wait for evidence of an improvement on the ground before adding large positions as the risk-reward proposition had turned unfavourable following the steep run-up in the markets. Another PMS provider told clients that they can top-up their equity exposure, but in a staggered manner as further correction could not be ruled out.

Jash Kriplani