Street signs: Bulls charge ahead, IPO stars shine bright, and more

Bulls charge ahead: Nifty set to break resistance levels

Soft US jobs data is expected to strengthen the market’s winning streak. Since reaching a low of 18,974 last Wednesday, the National Stock Exchange Nifty50 Index has rebounded by 257 points, or 1.4 per cent, following consecutive days of gains amid the softening of US bond yields, which fell below 4.6 per cent. The index recently closed at 19,230. Technical analysts suggest that another 200-point upmove could weaken the bearish grip on the markets. Santosh Meena, head of research at Swastika Investmart, noted, “It’s worth mentioning that resistance levels at 19,330, 19,440, and 19,550 pose challenges. The correction is expected to conclude once the Nifty surpasses the 19,550 mark, maintaining a bullish outlook as long as it remains above 19,060.”

IPO stars shine bright: Mankind, SBFC, and Fusion set to break free

Shares of Mankind Pharma, SBFC Finance, and Fusion Micro Finance are likely to attract attention as the lock-in periods related to their initial public offerings (IPOs) come to an end. For Mankind and Fusion, this marks the conclusion of a one-year share lock-in on pre-IPO shares, while for SBFC, it signifies the end of a 90-day lock-in period for anchor investors. Mankind and SBFC have seen approximately a 65 per cent increase in their share prices over the issue price, while SBFC has experienced a nearly 44 per cent increase. Historically, stocks have come under pressure following the expiration of the lock-in period, especially in companies backed by private equity players.

Protean and ESAF IPOs buck the trend with strong grey market premiums

The grey market premiums for both Protean eGov Technologies and ESAF Small Finance Bank currently stand at 22 per cent and 33 per cent, respectively. Investment bankers believe that due to the unique nature of their businesses, both initial public offerings (IPOs) are likely to perform well, despite the volatility in the secondary market. ESAF’s Rs 460 crore IPO was subscribed 1.7x on opening day, while Protean raised Rs 144 crore from anchor investors. ESAF, with its IPO closing on Tuesday, is valued at Rs 3,080 crore, while Protean, valued at Rs 3,200 crore, will see its IPO close a day later.