New series to start on positive note

KS Badri Narayanan Chennai | Updated on June 25, 2021

Lack of fresh triggers will keep market in narrow range

The beginning of the fresh monthly series on the NSE is likely to open on a firm note on Friday. US and Asia-Pacific stocks indicate the bullish trend to sustain, while the SGX Nifty signals a flat-to-positive opening for Nifty futures. The SGX Nifty futures is currently ruling at 15,840 (8 am IST) against the Nifty July futures of 15.832.45

Overnight US stocks jumped between 0.5-1 per cent, on strong results from Accenture. Equities across the Asia-Pacific region are also ruling firm in early deals on Thursday.

Also read: Broker's call: M&M (Buy)

Market experts said the market currently lacks fresh triggers to surge higher. Till such time any triggers arise, the index is likely to move in a narrow range, they added.

According to analysts, Nifty futures has witnessed a strong roll-over of 80 per cent, which is significantly higher in the last few years. Last month, Nifty futures had saw a roll-over of 68 per cent, while the three-month average stood at 67 per cent. Bank Nifty futures witnessed a roll-over of 80 per cent.

This signals the market is likely to remain firm during the July series too, said analysts.

The prevailing consolidation in the index is largely in line with the global counterparts; so participants should continue to keep a close watch on the world market for cues. Despite the positive bias, we’re seeing restricted participation; so traders should focus more on the selection of sectors and stocks, said Ajit Mishra, VP - Research, Religare Broking Ltd.

According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities: “On the day of the monthly expiry of F&O contracts, the market closed just below the crucial resistance of 15,800/52,800. However, the broader market remained strong and the Nifty/Sensex has formed a bullish continuation formation. Based on it, we would see the levels of 16,050/16,150 (53,750) levels in the near term and the level of 15,670/52,300 would act as a final stop loss for long positions.”

Stocks to watch

The NSE has added four more scrips to the F&O segment from June 25. These are Aditya Birla Fashion Retail (market lot: 2,600), Coromandel International (625), Indian Hotels (3,900) and Metropolis (200). These scrips will see increased activity at the bourses.

Asian Granito India: Crystal Ceramics Industries, a material subsidiary of Asian Granito India, has completed 12,000 square meters per day of glazed vitrified tiles brown field capacity expansion at its Meshana Plant. The capacity addition will increase the total capacity of Crystal Ceramics to 36,000 sqmt/day .

Hazoor Multi Projects has received work order of ₹5.90 crore for completion of balance work of ‘National Highway No 548-A from section Waken Pali to 2 lane with paved shoulder; from Varaha Infra.

IPO screener

Today is the last date for subscription of the initial public offering of India Pesticides Limited, which came out with a price band of ₹ 290-296. The IPO of the agro-chemicals company and manufacturer of technicals and APIs, has so far received bids for 3.8 times. The portion reserved for retail investors was subscribed 5.87 times and non-institutional investors 0.91 times.The qualified institutional buyer (QIB) category was subscribed 2.31 times. The total size of the offer is ₹800 crore at the upper price band of ₹296 a share. The IPO comprises a fresh issue of equity shares aggregating up to ₹100 crore and an offer-for-sale aggregating up to ₹700 crore.

Results calendar

ABM Knowledgeware, Alphageo (India), Apex Frozen Foods, Atul Auto, Antony Waste Handling Cell, Finolex Industries, Godfrey Phillips, HCL Infosystems, Hindustan Copper, Indraprastha Gas, Inox Wind, JSW Energy, MSTC, PNC Infratech, RailTel Corporation of India, Shree Renuka Sugars, Selan Exploration Technology, State Trading Corporation of India, Texmo Pipes & Products, and Voltamp Transformers will release quarterly earnings on June 25.

Published on June 25, 2021

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