Street signs: Nifty seen in 9,600-11,000 zone in July, LIC IPO, and more

Nifty seen in 9,600-11,000 zone in July

The Nifty ended the June series with gains of 8.4 per cent, with some long positions getting rolled over to the July series. The rollover in Nifty stood at 78.9 per cent, higher than its quarterly average of 69.7 per cent. The options data suggests a trading range of 9,600-11,000, with the possibility of an upmove towards 10,800-11,000 levels. Analysts believe the downside is limited considering aggressive put writing at 9,800-10,000 levels and easing of the India VIX to near 30 levels. However, 10,500-10,700 may act as a strong resistance going forward, considering that foreign investors may book profits at higher levels. The benchmark Nifty ended at 10,383 on Friday.

 Ashley Coutinho

PSU trade gains currency

Taking advantage of the strong momentum in the market, many traders are betting on the shares of beaten-down public sector undertakings (PSUs). Last week, the BSE CPSE index, an index of 55 PSU stocks, rose 5.4 per cent, outperforming the benchmark Sensex, which rose 1.3 per cent. “The market is in the risk-on mode. Many large-caps have rallied sharply. Also, good private companies in the mid-cap space have seen decent gains. As investors scout for more opportunities, PSUs could prove to be good bets,” said an analyst.

Sundar Sethuraman

I-banks eye LIC IPO advisor role

Investment banks (I-banks) are looking to play the role of transaction adviser (TA) for the proposed initial public offering (IPO) of insurance giant Life Insurance Corporation of India (LIC). This, after the Centre has clarified that if any Ibank gets selected as TA, it can still be appointed as book running lead manager (BRML) for the IPO. “Typically, an adviser doesn’t get to act as the BRML. However, the government has made an exception. As a result, a lot of Ibanks will bid for the TA’s role. This will improve their chances of being appointed BRML for the mega IPO later,” said an investment banker.
 

Samie Modak