Street signs: Market weakness might continue; BF Utilities gains, and more

Topics Indian markets

Market weakness might continue

Traders are building up short positions on the markets as they expect the correction to continue in the coming sessions. Traders see the Nifty slipping another 100-150 points from the current levels. "We can see dips towards 11,450-11,400 levels. The major resistance levels for the Nifty are at 11,620-11,700," said a technical analyst. If the Nifty slips to the levels that traders expect, this would translate into a further correction of 0.8-1.3 per cent. On Friday, the Nifty ended 0.2 per cent lower at 11,552 points, which traders saw as a strong indicator of a bearish trend. Technical analysts see further downside once the immediate support of 11,535 is broken, which is just 17 points away. Market volatility is also expected to continue on account of weak quarterly results.

Jash Kriplani

BF Utilities gains amid Karnataka crisis

Shares of BF Utilities gained 18 per cent last week even as the benchmark Nifty fell about 2 per cent. While there was no apparent reason for the upmove, some believe it could be on account of the political crisis in Karnataka. Brokers say traders are betting that a change in regime could benefit BF Utilities, which has road interests in the southern state. “The stock has underperformed during the tenure of the current government. Some traders believe there could be a change in the fortunes of the company if a new government takes charge,” said a broker.   
Sundar Sethuraman

Firms eye IPOs before approvals lapse 

There are eight companies whose one-year nod from market regulator Securities and Exchange Board of India to launch their initial public offerings (IPOs) is set to expire. Investment bankers say they have been approached by some of these companies to check if they can go to the market before the approval lapses. Cumulatively, these eight companies are looking to raise nearly Rs 9,000 crore. However, given the volatile market conditions, it looks unlikely that many of them will be able to hit the market.

Sundar Sethuraman

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