Street Signs: Cracks in the SIP wall, GMPs for Hexaware and Ajax modest

Locked at 23,800: Will Nifty find the key?

 

The National Stock Exchange Nifty 50 index, up 773 points (3.4 per cent) from its recent low, is struggling to break past the 23,800 resistance level, say technical analysts. A decisive move above this mark is key for an upward trend. “A strong buying push is needed to clear this level; until then, traders should book profits periodically,” said Rajesh Bhosale, technical analyst at Angel One. “The market may remain range-bound between 23,250 and 23,800 in the near term, with a breakout potentially reigniting momentum.” Ajit Mishra, senior vice-president of research at Religare Broking, added, “The recent swing low of 23,200 is a critical support level to maintain a positive bias, while 23,900 remains a major resistance. A breakout above this could propel the index towards 24,200.”

 

Fault lines in SIP fortress: A cause for concern?

 

After climbing to a record in December, systematic investment plan (SIP) closures remained high in January, according to mutual fund (MF) industry executives. The uptick is linked to recent equity market volatility, which has erased one-year SIP returns for most equity schemes. While many investors remain in profit, the downturn has dampened the experience of the 10 million new investors who entered the MF space over the past year. In December, a record 4.5 million SIP accounts either matured or closed. January data is expected this week.

 

Hexaware, Ajax: IPO flames flicker in a chilly market

 

Grey market premiums for software services firm Hexaware Technologies and construction equipment manufacturer Ajax Engineering stand at 2 per cent and 10 per cent, respectively. Market participants indicate that volatility in the secondary market is weighing on initial public offering (IPO) activity. Both companies have downsized their IPOs to align with challenging market conditions. The offerings involve only secondary share sales by promoters and private equity investors. Ajax’s IPO, opening Monday, seeks a Rs 7,200 crore valuation. Hexaware’s Rs 8,750 crore IPO, opening Wednesday, values the Carlyle-owned firm at Rs 43,025 crore.