Street signs: Outlook for Bank Nifty, Jubilant Life shares, and more

Banking stocks to be under pressure

Despite shedding more than nine per cent in the January series, the outlook for Bank Nifty remains bleak. Downside support for the index has moved to 24,750 with the upside capped at 25,500. There has been a significant build-up of long positions in private sector banks, which are expected to do well, even as public sector banks' woes would continue. With the exception of State Bank of India which has seen some stability, other counters have seen a build-up of short positions, said analysts. In the past five trading sessions, shares of Punjab National Bank, Indian Bank and Union Bank of India have shed 7.5 per cent, 6.7 per cent and 4.1 per cent, respectively

Ashley Coutinho

HG Infra commands 25% premium 

HG Infra Engineering is commanding a 25 per cent premium in the grey market. The infrastructure construction company’s Rs  4.6 billion initial public offer (IPO) opens on Monday. The company has fixed a price band of Rs  263-Rs  270 per share. The premium in grey markets for HG Infra is on account of a strong order book and execution capabilities. “The financials of HG Infra look positive and the company also has strong governance structure. There will always be demand for such companies,” said a broker. 

Pavan Burugula

More turmoil ahead for Jubilant Life  

On Friday, shares of Jubilant Life Sciences came under intense selling pressure after reports of a stake sale by its promoter surfaced. The stock fell more than 10 per cent on Friday and analysts expect more headwinds ahead. “The company is heavily dependent on US markets which contribute to the bulk of its revenue. Price attrition in the US along with less than impressive product mix could have a bearing on the stock,” said a broker. The promoters sold 5 million shares for Rs  4.5 billion through bulk deal route on Friday. The stock had a dream run in the last three years as it gained a massive 310 per cent

Pavan Burugula