Range-bound trading likely amid more IPOs

Spurred by better macroeconomic data, Dovish US Fed stance, continued FII buying and positive global cues; the domestic stock markets rallied for seventh successive week during the week ended December 15. BSE Sensex gained 2.37 percent and ended at 71,483 points, after hitting a record high of 71,605 points, while NSE Nifty gained 2.32 percent and closed at 21,456 points, after hitting a new milestone of 21,492.30 points.

Near-term direction of market will be dictated by the minutes of RBI MPC meeting, IPO market action, international crude oil prices, rupee-dollar movement, global cues like US Q3-2023 GDP numbers and Bank of Japan’s policy decision. The primary market will be in the spotlight coming week, with a flood of IPOs from 12 companies to raise more than Rs4,600 crore. Microfinance institution Muthoot Microfin with a price band of Rs277-291 per share; the Jaipur-based jewellery retailer with a price band at Rs52-55 per share; the Mumbai-based real estate developer Suraj Estate Developers with a price band at Rs340-360 per share; the Punjab-based heavy forgings and high-precision machined components maker Happy Forgings with a price band at Rs808-850 per share; the antique bridal gold jewellery maker RBZ Jewellers with a price band for its IPO at Rs95-100 per share; Credo Brands Marketing, the Mumbai-based Mufti Jeans brand with a price band of Rs266-280 per share; the Telangana-based company manufactures products for global original equipment manufacturers in the energy, aerospace and defence, and oil and gas industries Azad Engineering with a price band at Rs499-524 per equity share.

F&O / SECTOR WATCH

Mirroring the strong bullish sentiment in the cash market and benchmark indices scaling all-time highs; the derivatives segment witnessed buoyant trading. The IT, Metal and PSU bank sectors exhibited notable strength, contributing significantly to the overall market gains. The highest Call Open Interest for Nifty options is concentrated at 21,500 and 21,600 strike prices whereas the highest Put Open Interest is observed at the 21,300 and 21,200 strike prices.

STOCK PICKS

Engineers India Ltd is a Government of India owned engineering consultancy and engineering, procurement, and construction (EPC) company. The company’s business operating segments include Consultancy & Engineering Projects and Turnkey Projects. It’s expanding overseas presence in Middle East, Africa, South & Central Asia and Latin America.

(The author is a senior maket analyst and former vice- chairman, Andhra Pradesh State Planning Board)