Street signs: Traders eye 16K on Nifty50, Tatva Chintan's GMP at 60% & more

Traders eye 16K on Nifty50

Technical analysts see the benchmark Nifty50 breaching the 16,000-levels soon. The positivity stems from the fact that the index has managed to close above 15,900, a mark the index made several attempts to pass. “Finally, the sturdy wall was breached and that too on a closing-basis. Now, 16,000 is merely a formality and if there is no aberration on the global front over the weekend, we would see the market reach­ing the millstone in the coming week. After this, 16,200 is the next level to watch out for,” said Sameet Chavan, chief analyst (Technical and Derivatives), Angel Broking. Analysts say, perform­ance of the banking stocks would remain key if the market has to climb higher. On the downside, 15,800 followed by 15,630 are seen as key supports.

Tatva Chintan’s GMP at 60% 

Shares of Tatva Chintan Pharma Chem, a specialty chemicals manufacturer, are changing hands at a premium of 60 per cent in the grey market. The firm’s Rs 500-crore IPO was oversubscribed 4x on the first day. The price band for the IPO is Rs 1,073-Rs 1,083 per share. Market players said they expect the stock to list at Rs 1,800 per share. At the upper end of the price band, Tatva is valued at 46 times its FY21 earnings. Analysts said, the average P/E multiple for listed specialty chemical stocks is 56x. They said IPO investors will also take cues on how shares of Clean Science Technology, which operates in the same space, perform during their stock market debut on Monday.

Mixer makers set for rural boost

Companies manufacturing mixers, used for cooking, are poised to witness growth from rural India. According to analysts, the penetration level across India is just 32 per cent and only 24 per cent in the rural markets. They say rural India offers a substantial growth opportunity to the mixer industry due to rising electrification in the hinterland, growing distribution, and a favourable base. Brokerages say, Bajaj Electricals and Havells India are the companies investors should eye in this space. “We believe Bajaj Electricals has the advantage of an established brand, distribution and a large product portfolio; hence we expect it to be a medium to long-term winner,” said a note by ICICI Securities.