Street signs: Nifty eyes 26K, demat flood breaks levee, HDB IPO fork

Ready, set, breakout: Nifty eyes 26K finish line  The Nifty last closed at 25,638, and technical analysts say a move beyond key resistance could carry it past the 26,000 mark. Nandish Shah, senior derivatives and technical research analyst at HDFC Securities, said a decisive close above 25,740 might set off the next leg higher, with 25,317 acting as immediate support. Dhupesh Dhameja, derivatives research analyst at Samco Securities, pointed to a strong weekly bullish candlestick, marked by a close above 25,500. “If the index sustains above 25,750, more gains are likely. A pullback to 25,500–25,400 would be seen as a healthy correction, supporting the ongoing uptrend,” he said. The Nifty is now just 640 points, or 2.4 per cent, shy of a new record high.

 

Demat flood breaks the levee at 200 million

 

At the start of June, India’s domestic markets were just 3 million dematerialised (demat) accounts short of the 200 million milestone. With a flood of IPOs and heavy trading in the secondary market, analysts say the number may have already crossed that mark, though official data is expected early next month. Over the past year, an average of 2.9 million demat accounts were opened each month. Whether the milestone was crossed this month or is just days away, the breakneck pace has surprised many. From 40.9 million demat accounts in March 2020, India breached 100 million in August 2022 — and doubled that figure in under two years. The spike underscores the rapid rise in retail investor participation in Indian markets. 

 

HDB IPO fork: Play the odds or go for size?

 

The HDB Financial Services initial public offering (IPO) has sharpened focus on a recurring dilemma — whether to apply under the retail or shareholder category. Both segments saw bids worth over ₹5,500 crore each. The retail category, which had more shares earmarked, was subscribed 1.5x. Meanwhile, the shareholder category — backed by HDFC Bank’s large retail base — was oversubscribed 4.5x. A banker explained, “The retail route gives you better chances of getting at least one lot (20 shares for HDB). But if you’re aiming for a larger slice, the shareholder category works better, since allotments there are done on a pro-rata basis.”