Street Signs: GMP of TMB, DreamFolks positive, market trend positive & more

Analysts recommend traders to maintain a bullish bias and buy on dips

DreamFolks
Photo: Kamlesh Pednekar
Sundar Sethuraman
2 min read Last Updated : Sep 05 2022 | 6:10 AM IST
Market trend remains positive

The benchmark Nifty ended little changed last week despite sharp pull-back in global equities. The index last closed at 17,539. Technical analysts believe the market trend remains positive and investors can continue to buy on dips. “After sharp rise from 15,200 to 18,000, the Nifty is now consolidating. While other global indices appear to be following a similar structure, Indian markets are outperforming. At the moment, the level of 17,150 is likely to serve as a key support zone. We recommend traders maintain a bullish bias and buy on dips as long as the mentioned support is protected,” said Apurva Sheth, head of market perspectives, Samco Securities.

Grey market premium of TMB, DreamFolks positive

Shares of Tamilnad Mercantile Bank (TMB) are changing hands at 7 per cent premium in the grey market. Meanwhile, grey market premiums suggest that DreamFolks Services shares could soar more than 30 per cent during its stock market debut on Tuesday. TMB’s initial public offering (IPO) opens on Monday. The price band for its issue is Rs 500-525 per share. At the top end of the price band, the bank will raise Rs 832 crore and will be valued at Rs 8,314 crore. TMB plans to utilise the IPO proceeds to augment its tier I capital base. DreamFolks’ IPO was subscribed 57x. The company enables credit card companies and corporations to provide their clients access to airport services. At the IPO price of Rs 326 per share, DreamFolks was valued at Rs 1,703 crore.

Pipe manufacturers on investor radar

Pipe manufacturers are back on investor radar, notwithstanding the possibility of subdued profitability in the second quarter of this financial year (2022-23, or FY23). According to analysts, polyvinyl chloride (PVC) pipe prices continue to be under pressure, even after declining 20 per cent quarter-on-quarter. This will result in inventory losses and weigh on the profitability of pipe makers. However, demand is expected to pick up during the second half of FY23 after stabilisation in PVC prices as housing activity remains strong. Since PVC prices have corrected significantly, lacklustre agricultural demand is expected to gather steam. Astral Pipes and Supreme Industries are companies seen gaining.

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Topics :DreamFolks ServicesNSE Nifty50 benchmark indexBSE SensexMarket newsTamilnad Mercantile BankTraders

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