Street signs: PSU bank shares fall, soothing balm from Vakrangee, and more

PSU bank shares on a weak footing  

The Nifty PSU Bank index, which slid 8.4 per cent last week to 3,189, is likely to extend losses if technical analysts are to be believed. Chartists say the index could drop another 5-10 per cent if it drops below 3,100.

“After sharp losses, the index is close to levels seen just ahead of the recapitalisation announcement in October. If the index fails to sustain at above current levels, it could drop by as much as 10 per cent,” said a technical analyst.

The Nifty PSU Bank index had surged 30 per cent in a single day on October 25 with high volumes. Due to the sudden jump, there is lack of support at current levels, the analyst explained.

Samie Modak

Market players get bullish on Escorts 

Escorts, which operates in tractors and construction and railway equipment, is getting good attention from market players. Some big investors are picking up the stock at every dip for quite some time now as a cyclical uptrend in tractor sales will benefit. “Also, the railway business will aid its profitability,” said a fund manager who is quite bullish on the company. 

The stock is up 10 per cent in the past month – from Rs 795 to Rs 877. 

Joydeep Ghosh

Soothing balm from Vakrangee 

Shares of digital payments enabler Vakrangee have rebounded 25 per cent in past five trading sessions to Rs 245. 

The stock had crashed 62 per cent from Rs 505 to Rs 192 between January 25 and February 8 amid allegations of irregularities. 

The latest jump comes after Vakrangee’s board approved a Rs 12.5-billion dividend payout or share buyback. Under its 

long-term capital allocation plan, the company has decided to pay two-thirds of its free cash flows as dividend or buyback.

“The latest announcement by Vakrangee has helped soothe investor nerves. We see the stock climbing back to Rs 300 levels,” said a broker. 

Samie Modak