Street signs: Nifty to consolidate at current levels, DLF stock, and more

Among banking stocks, State Bank of India, HDFC Bank and ICICI Bank could prove good bets, say analyst

The Nifty has formed a doji candlestick for a second consecutive week, indicating indecisiveness among the market participants. It has to hold above 11,850 levels to witness an upmove towards 11,950, and then 12,000 zones, say analysts. On the downside, major support is seen at 11,780 levels. Derivative analysts believe that it is better to take stock specific positions now rather than bet on the index. The Bank Nifty, on the other hand, has been forming higher highs and higher lows from the past five weeks. It has to continue to hold above the 30,800 zone to witness an upmove towards 31,250, and then 31,500 zones, while on the downside major support is seen at 30,400 levels. Among banking stocks, State Bank of India, HDFC Bank and ICICI Bank could prove good bets, said Chandan Taparia, derivative analyst at Motilal Oswal Financial Services. 

--Ashley Coutinho

CSB commands grey market premium

Prem Watsa's Fairfax-backed CSB Bank (formerly Catholic Syrian Bank) is likely to extend the trend of good listings, if grey market premiums are to go by. According to market participants, shares of the private sector lender are changing hands at a premium of 35 per cent in the grey market. CSB Bank’s Rs 450-crore IPO opens on Friday. The shares are likely to be priced in the range of Rs 190 and Rs 200 apiece. The grey market premium currently is Rs 75 per share. The previous IPO to hit the market of state-owned IRCTC has proved to be a bumper for investors. Its shares have nearly tripled since listing about a month ago.

--Samie Modak

MSCI tailwind for DLF

Shares of DLF have surged nearly 50 per cent in the past five weeks amid positive calls from analysts. The latest up move in the stock, however, has come on account of its surprise inclusion in the MSCI India index, which is widely-tracked by global investors. The stock wasn’t considered to be an inclusion candidate. Interestingly, DLF was among the few stocks which had corrected more than 15 per cent even after the tax cut announcement. “Not many were expecting DLF to benefit from either the tax cut nor was it speculated to be part of the MSCI index. As a result, the sharp gains made in recent weeks have surprised the Street,” said an analyst. Some are expecting the stock to extend gains as the MSCI inclusion will be effective from November 27, which will lead to some passive inflows.

--Samie Modak