Street signs: Nifty at crucial juncture, crucial week for IPOs, and more

Nifty hovers near key technical levels as markets eye IPO revival and NSE index rejigs, making the coming week crucial for equity sentiment

Nifty at crucial juncture 

Equity markets extended their upward trend last week, though a sharp 1.4 per cent fall on Thursday tested the bullish outlook. After swinging more than 500 points during the week, the index settled at 25,571. While the US Supreme Court ruling on tariffs is expected to boost equities, on the technical front, analysts strike a cautious note. Hariprasad K, founder, Livelong Wealth says 25,500 would be the key pivot for the coming week, with a sustained move above the level opening the door for a rally towards 25,700, while a break below 25,350 could tilt sentiment back towards bearishness. According to Bajaj Broking, immediate support is seen at 25,350, followed by 25,200 — close to the 200-day exponential moving average — while resistance is placed at 25,650 and 25,720, where higher levels may attract selling pressure. 

Crucial week for IPOs 

After a subdued start to the year, IPO activity is set to pick up pace this week, with five mainboard issues collectively aiming to raise about ₹4,338 crore. Market participants said the upcoming offerings will be a crucial test of investor appetite in the primary market, which has remained muted amid a string of lacklustre listings. Grey market premiums (GMPs) for these issues are currently in the range of 1-10 per cent. Gaudium IVF & Women Health is commanding the highest premium, while Brookfield-backed CleanMax Enviro Energy Solutions is trading at the lower end of the range. “Several companies are lined up to tap the markets. A sustained recovery in the secondary market and strong subscription to the ongoing issues will be critical for sentiment to turn positive,” said an investment banker. 

Index rejig cometh 

NSE Indices will conduct the semi-annual and quarterly review of constituents for its indices on Monday after market close. Market participants expect status quo in the flagship Nifty50, while changes are likely in the broader indices, with five reshuffles anticipated in the Nifty Next50 and as many as 15 in the Nifty Midcap150. Tata Motors’ commercial vehicle business, Muthoot Finance, Tata Capital and ICICI Prudential AMC are among the stocks seen as contenders for inclusion in the Nifty Next50 index.