Street signs: Traders eye a Nifty breakout, Aether Industries stock & more

Traders eye a Nifty breakout 

The benchmark Nifty swung wildly last week between 15,740 and 16,400, before ending at 16,266. Technical analysts say last week’s trading range will act as good support and resistance and the next big directional move will depend on which side the index breaks out. Ruchit Jain, lead research analyst, 5paisa, says a move above 16,400 could lead to an upmove towards 16,800, while a break below 15,700 would resume the downtrend. A note by ICICIdirect says short covering could take the index towards 16,800-17,000 in the weeks to come.

Aether Industries’ shares trade at 5% in grey-market premium

Shares of Aether Industries are trading at a premium of 5 per cent in the grey market, ahead of its Rs 810-crore initial public offering (IPO). The shares were changing hands at Rs 675, against the IPO price band of Rs 610-642 per share. The sharp sell-off in the secondary market this month has queered the pitch for IPOs. Yet, eight companies launched their maiden share sale in May. Several, including Aether, had to reduce their issue size to come to the market. Aether’s anchor book opens on May 23 and the IPO between May 24 and May 26. The company is a manufacturer of advanced intermediates and active ingredients, catering to the pharmaceutical and specialty chemical industries.

Scammers phishing in troubled waters 

Fraudsters are trying to lure gullible investors into sharing their login details to gain access to their trading account. This is done through social media platforms, such as Telegram, by promising quick and easy returns. After gaining access, scammers typically buy illiquid options at unusually high rates where they are only the counterparty, causing loss to investors. With markets faltering, more investors could fall into the trap, warn broking and exchange officials. The officials are running educational campaigns and putting in place some checks and balances to ensure investors don’t fall prey. They are strongly advising investors to not share their login credentials with anyone.