Volatility, uncertainty continue to haunt mkts
The 19,200 is a key support and if the level breaks and markets sustain below the level, we could see a sharp correction; As long as this holds, the level of resistance is 19,600-19,650
It’s been a see-saw battle between the bulls and bears as we enter the climax for expiry of August F&O series. With one day to go after the August 24-30 period under review, the bulls almost drew level with the bears for the period under review. BSE Sensex gained on two of the five trading sessions and lost on two, while it remained flat on Wednesday after being up more than half a percent. The loss for the period was a mere 346.05 points or 0.53 per cent to close at 65,087.25 points, while Nifty lost 96.55 points or 0.50 per cent to close at 19,347.45 points. Markets have been rallying strongly since the beginning of the week but surrendering a large part of the gains as the day progresses. The true test would be tomorrow when the series ends. Dow Jones too has had a strong showing and gained on four of the five trading sessions. Dow Jones gained 563.84 points or 1.64 per cent to close at 34,852.67 points.
The primary markets have been quite active. During the period under review, we saw two issues open and close for subscription. One other issue has opened and would close on Friday. Yet another issue listed on Tuesday.
The issue from Aeroflex Industries Ltd saw its issue getting subscribed 97.78 times. The QIB portion was subscribed 190.97 times, HNI portion 129.56 times and Retail portion 35.28 times. There were 27.64 lakh applications. The issue was open between Tuesday (August 24) and Thursday (August 26) and the price band was Rs102-108.
The second issue was from Vishnu Prakash R Punglia, which opened on Thursday (August 24) and closed on Monday (August 28). The issue was for 3.12 cr shares and the price band was Rs94-99. The company is an infrastructure company involved in water projects, Railway projects, Road projects and Irrigation network projects. The company generates close to 85 per cent of its revenues from water supply projects which are executed for state governments, local municipal bodies, State PWD bodies and many more. They are integrated players doing EPC (engineering, procurement and construction). The issue was subscribed 87.8 times overall with QIB portion subscribed 171.69 times, HNI portion 111.02 times and Retail portion subscribed 31.99 times. There were 20.81 lakh application forms in the issue.
The issue from Pyramid Technoplast Ltd listed on the bourses on Tuesday (August 29). The company had issued shares at Rs166. The share on debut day made a high of Rs188 and closed at Rs177.85, a gain of Rs11.85 or 7.13 per cent. Shares had closed on opening day at the lower circuit. The weakness and selling pressure continued today as well and the share closed at lower circuit at Rs168.80. The gains in the share now stand reduced to a mere Rs2.80 or 1.68 per cent. Any further weakness would bring this share into negative territory going forward.
The issue from Rishabh Instruments Ltd has opened on Wednesday (August 30) and would close on Friday (September 1). The issue consists of a fresh issue of Rs75 cr and an offer for sale of 94.58 lakh shares in a price band of Rs418-441. The company is a global energy efficiency solution company focused on electrical automation, metering and measurement; precision engineered products.
At the end of day one of bidding the issue was subscribed 0.51 times with QIB portion subscribed 0.01 times, HNI portion subscribed 0.43 times and Retail portion subscribed 0.81 times. There were 48,276 application forms in all.
The issue is for a medium term as the working in FY23 was affected on account of shortage of chips. Things have normalised and there would be improvement in the bottom line going forward.
Over the last three trading sessions one is witnessing that intraday gains are reducing towards the end of the day and Wednesday in particular they disappeared totally. This indicates the uneasiness in the market. However, on the positive side, Dow has been gaining continuously for the last three days and things could improve. Going forward in the August 31- September 6 period expect volatility and uncertainty to continue. The 19,200 is a key support for the markets and if the level breaks and markets sustain below the level, we could see a sharp correction. As long as this holds, the level of resistance is 19,600-19,650. In short, it’s a range-bound trading movement with sharp movement in either direction. Trade cautiously.