Street signs: Market in 'uptrending zone', Devyani GMP at 60%, and more

Market in ‘uptrending zone’
 
Benchmark indices fell marginally last week amid high volatility, with the Nifty ending at 15,763. Technical analysts say the market remains in an uptrend as the index has managed to find support at its 50-day moving average. “We are of the view that the broader texture of the market is still in the bullish zone, but due to non-directional activity, indices may consolidate in the range of 15,600-15,900. In the near future, the 15,720-mark could act as a strong support level. A decline below this could take the index to 15,600. On the flip side, the 15,900 should be the sacrosanct level for the bulls, above the same uptrend formation could continue up to 15,960-16,050 levels,” says an analyst. The Nifty Metal Index will continue to remain in focus, he added.
               
Sundar Sethuraman
 

Devyani International GMP at 60%

Shares of Devyani International are changing hands at a premium of 60 per cent ahead of its Rs 1,838-crore IPO. The company is one of the largest operators of quick service restaurants (QSR) and has the franchisee for popular brands like KFC, Pizza Hut, and Costa Coffee. “After the success of Zomato, investors are excited about the resta¬u¬rant space. Devyani being the single-largest QSR firm listed on Swiggy, many investors are viewing it as a proxy for India’s growing consumption story,” said an analyst. The firm has set a price band of Rs 86-90 per share. At the top-end, it will be valued at nearly Rs 10,823 crore. Devyani has reported net loss in the previous three financial years. 

Samie Modak

Xinjiang ban puts limelight on textiles
 
The US Senate’s decision to ban imports from the Xinjiang region in China has put the spotli­ght on domestic textile firms. Xinjiang is China’s cotton-producing hub and the country’s largest textile exporter. Analysts believe in the long-run domestic manufacturers should benefit from the developments as global brands could turn to Indian manufacturers to meet their requirements. KPR Mill, Indo Count, Welspun, Himatsingka Seide, Trident, and SP Apparels are some of the stocks brokerages are recomm­en­ding to their clients. In the past one week, they have rallied 5-15 per cent.   
 
Sundar Sethuraman