Street Signs: Nifty racing past resistance, BSE's high-wire act, more

Unchained, Nifty racing past resistance with legs to run

 

The benchmark National Stock Exchange Nifty posted its best weekly gain since June, rising 2.3 per cent to close at 24,678. The 50-share blue-chip index has rebounded by 1,414 points, or 6.1 per cent, from its November lows. Technical analysts suggest that the rally still has room to grow, as long as the index stays above its support zone of 24,400. “The index has broken out of its recent consolidation phase, signalling a rise in bullish sentiment. Moreover, the Nifty has been holding above the critical 21-day exponential moving average, further reinforcing optimism. The sentiment is likely to remain favourable as long as the Nifty sustains above 24,400, with the potential to test levels of 24,600–24,700. On the downside, a drop below 24,400 could trigger a correction towards 24,150,” said Rupak De, a senior technical analyst at LKP Securities.

 

BSE’s high-wire act: Balancing F&O norms with market growth

 

Shares of BSE have surged more than 20 per cent in less than two weeks, defying concerns surrounding the Securities and Exchange Board of India’s (Sebi’s) new futures and options (F&O) circular. While the regulatory changes, which mandate the discontinuation of weekly derivatives contracts based on the BSE Bankex index, may initially appear to be a setback, analysts see them as a growth opportunity for BSE. They believe the new F&O rules could help BSE increase its market share in the options segment, potentially growing from the current 15 per cent to 25 per cent. “The Sebi circular presents a unique opportunity for BSE to expand its market share in the derivatives segment. By focusing on product development, technological advancements, competitive pricing, and targeted marketing, BSE can capitalise on the evolving landscape and drive substantial growth in its top line,” said Sudarshan Bhandari, insight provider and co-founder of Beat The Street, a financial platform focused on equity research. 

  GMPs reach critical mass: IPOs achieve liftoff velocity

 

Initial public offering (IPO) investing may be regaining its appeal after a series of underwhelming listings. Grey market premiums (GMPs) for three IPOs opening this Wednesday suggest a potential shift in sentiment. Shares of digital payments firm MobiKwik are trading at a premium of over 35 per cent, while budget supermarket chain Vishal Mega Mart and pharmaceutical contract development and manufacturing organisation Sai Life Sciences are seeing GMPs of 22 per cent and 7 per cent, respectively. Market experts attribute this optimism to the recent market rebound from November lows and improved liquidity conditions. Collectively, the three IPOs aim to raise over Rs 11,600 crore, signalling renewed interest in the primary market.