Street Signs: Nifty's wild ride, Avenue Supermarts stock slide, and more

Nifty’s wild ride: 750 points up, what’s next?

The benchmark National Stock Exchange Nifty has rallied 4 per cent, or 750 points, from this month’s low to end last week at 19,732. Technical analysts say the market could consolidate around the current levels as it is nearing the resistance zone. “The near-term uptrend status of the market remains intact, but there is a possibility of some more consolidation or minor weakness for the Nifty in the next one to two sessions. A decisive upside breakout of 19,875 is likely to bring more upside in the short term. At the lows, the area of 19,600–19,550 is going to act as support for the short term,” says Nagaraj Shetti, technical research analyst, HDFC Securities. “On the downside, 19,630–19,600 is the crucial support zone to watch out for, and in case of a dip, this zone is crucial to hold for an uptrend to continue,” adds Jatin Gedia, technical research analyst at Sharekhan. If weakness in banking stocks persists, the market could face downward pressure, warn analysts.
 

Tata IPO: Grey market surges 70%, ready for lift-off
 

The Rs 3,000-crore initial public offering (IPO) of Tata Technologies — the first maiden share sale from Tata Group in nearly two decades — will likely be a bumper hit if the grey market premium (GMP) is anything to go by. Shares of Tata Motors’ arm were changing hands at Rs 850, 70 per cent higher than its Rs 500, the top end of the price band. The company’s IPO opens on Wednesday. Other IPOs that open this week, where GMP is more than 25 per cent, are the state-owned Indian Renewable Energy Development Agency and consumer oil maker Gandhar Oil Refinery (India). This week will be one of the busiest for the primary market, with five companies looking to raise nearly Rs 7,400 crore.
 

Avenue Supermarts stock slide: Grocery play or investor dismay?
 

Shares of Avenue Supermarts are down nearly 7 per cent this year, even as the benchmark S&P BSE Sensex has rallied 7 per cent. The company, pursuing a grocery-first strategy to drive growth, has lost some favour, with more than half of analysts having an underweight stance on the stock. However, Morgan Stanley believes the stock holds potential. “The four-year compound annual growth rate revenue growth recovered to 20 per cent in the latest quarter after six quarters of decline. We see profitability benefiting once the growth flywheel kicks in,” it said in its 2024 outlook note. Overall, Morgan Stanley is positive on the consumer discretionary space. It has recommended a 500-basis point overweight on the stock vis-à-vis weight in the Morgan Stanley Capital International India Index, as it expects a recovery in rural demand to aid overall consumption demand.