Street Signs: Markets teeter on edge, Nuvama's unintended fall, and more

Markets teeter on edge: Hammer or hangman?

 

The Nifty 50 index slipped 0.7 per cent last week, snapping a two-week climb. After peaking at 25,662, it closed at 25,461. Caution is likely to set the tone this week, with markets on edge ahead of the July 9 deadline for countries to finalise trade deals with the US. Traders will also be watching volumes closely following the ban on Jane Street, a key player in the derivatives segment. “The daily chart of the Nifty shows a hammer pattern, typically a bullish reversal signal. Support lies at 25,300, and as long as the index holds above that level, bullish sentiment should persist, potentially setting up a quick rebound. The index could target 25,800–26,100 in the near term, with immediate resistance at 25,500; a breakout above that could open up more upside,” said Rupak De, senior technical analyst at LKP Securities.

 

Guilt by association? Nuvama’s unintended fall

 

Shares of Nuvama Wealth Management, majority-owned by private equity (PE) firm PAG, fell over 10 per cent on Friday. The drop followed a regulatory order by the Securities and Exchange Board of India involving US trading firm Jane Street, which partners Nuvama for local trades. Nuvama itself has not been directly implicated or accused in the case. In a Smartkarma note, Sudarshan Bhandari of Beat the Street argues that the market’s reaction may present a buying opportunity for long-term investors. “The overreaction concerning Nuvama seems to overlook the strength and diversification of its underlying businesses,” Bhandari writes. “With a strong performance in 2024–25 and ambitious, well-articulated growth plans for 2025–26 across its dominant segments — alongside the ongoing strategic PE exit — Nuvama appears well-positioned.” 

 

Funds load the cannons as tariff truce ticks down

 

Mutual funds are rushing to roll out equity new fund offerings (NFOs), riding the recent rebound and carefully timing launches around the July 9 expiry of the US tariff pause to sidestep a potential flare-up in volatility. Nearly a dozen equity schemes have opened for subscription over the past two weeks, most scheduled to close around or just after July 9. “We timed our launch so the NFO wraps up after July 9,” said a senior fund house executive. “That way, we deploy in calmer waters, away from tariff turbulence.” The burst of launches coincides with a near-20 per cent market rally from April’s lows.