Street signs: Nippon's next move, Nifty holds above 100-DMA, and more

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Traders await Nippon’s next move 

Shares of Reliance Nippon Life Asset Management have gained 27 per cent in two days. The rally follows parent Reliance Capital’s offer to Japanese partner Nippon Life Insurance to acquire its 42.9 per cent stake. Market players say traders are keenly eyeing Nippon's reaction to the proposal. "If traders get a hint that the Japanese partner is keen on buying out Reliance Capital and follow it up with a delisting bid, they will aggressively build position in the counter," said a broker. Currently, Reliance Capital and Nippon hold 42.9 per cent each, and the remaining 14 per cent is with the public. On many past occasions, traders have aggressively built positions in companies after getting a sniff of delisting.
 

Jash Kriplani

Nifty holds above 100-DMA
 

The benchmark Nifty has managed to sustain above the 100-day moving average (DMA), a crucial level. Technical experts say the market could once again enter correction mode, if it slips below 10,680, the 100-DMA level. On Friday, the Nifty ended at 10,792 after three successive days of gains. “The 100-DMA assumes significance now. If the Nifty fails to hold, it could decline to 10,530. If it sustains above that level, the gains can stretch up to 10,950,” said an analyst. The Nifty had last dropped below its 100-DMA on February 15 following which it had extended its losing streak.
 

Samie Modak

More AMCs spread wings
 

With the mutual fund (MF) industry facing a challenging environment, some asset management companies (AMCs) are diversifying into the alternative investment funds (AIF) space to tap more growth opportunities. IDFC MF is the latest entrant to this space, joining peers such as Reliance MF and Franklin Templeton MF. The AMC recently launched IDFC India Equity Hedge-Tactical Fund, which will follow a long-short equity strategy. The fund is aiming to generate returns across bull and bear markets. The launch of the hedge fund comes after parent IDFC shelved plans to exit the MF industry. The latest move underscores the lender’s long-term commitment to fund management business.
 

Jash Kriplani