Street Signs: Nifty's cliffhanger, Mkt's heavy hitters step into IPO ring

With the Nifty in a sell-on-rise phase and key support levels under threat, markets brace for two mega IPOs even as NSDL's post-listing rally stuns the street

The Nifty has slipped 1,285 points — roughly 5 per cent — over the past five weeks, with the blue-chip 50-share index last closing at 24,363. Technical signals indicate the downtrend could continue. “The index remains in a sell-on-rise phase, facing immediate resistance between 24,500 and 24,600, where fresh call writing is evident. It is likely to slide towards 24,160, marking the 23.6 per cent retracement of the rally that began in April,” said Kunal Shah, senior technical and derivatives analyst at Mirae Asset Sharekhan. Echoing the cautionary tone, Dhupesh Dhameja, derivatives research analyst at Samco Securities, said, “Breaking the key psychological support at 24,500 has rattled sentiment. Price action points to further downside, with a high probability of testing the 200-day exponential moving average near 24,200.”

 

Mkt’s heavy hitters step into IPO ring 

 

The initial public offering (IPO) market has been buzzing over the past two weeks, with over a dozen companies raising roughly ₹14,000 crore combined. However, most issuances were modest, averaging under ₹1,200 crore each. Now, investment bankers are preparing for two heavyweight IPOs expected later this month. According to market insiders, Tata Capital and LG Electronics India are set to launch IPOs pegged at ₹17,200 crore and ₹15,000 crore, respectively. “Roadshows for both firms are underway, not just across India but also in global financial hubs like Singapore, Hong Kong, and Dubai. The domestic market is deep enough to absorb two large issues concurrently, though some trimming might happen amid current market turbulence,” observed an investment banker.

 

Grey mkt’s blind spot: NSDL’s stunning breakout 

 

The shares of National Securities Depository (NSDL) have taken the market by surprise with an impressive after-listing rise. In the first three trading days, the stock jumped 62 per cent, far exceeding the grey market’s projected gain of about 20 per cent. Some analysts now see JSW Cement as another candidate for a bullish breakout. Its shares currently trade at a modest 5 per cent premium in the grey market. One analyst commented, “The IPO pricing appears fair relative to its peers, especially given JSW Cement’s high growth potential. The company plans to double its capacity within two years. Coupled with a strong environmental, social, and governance score, the stock should attract solid interest from major institutional investors.”