Street Signs: Record FPI sell-off, Nifty nears resistance zone, and more

FPI sell-off highest since March 2020

Foreign portfolio investor (FPIs) sell-off so far in June has been the highest since March 2020 — a month that saw peak pandemic-induced sell-off. According to the National Securities Depository data, FPI outflows this month are around Rs 46,000 crore. In March 2020, they had yanked out a record Rs 61,973 crore from the equity market. With only four sessions to go this month, it is unlikely that the FPI selling tally will breach March 2020’s. Also, in recent trading sessions, FPI selling has moderated on optimism that a fall in commodity prices could take the edge off on monetary tightening.

Nifty nears resistance zone

After rebounding 2.7 per cent last week, the Nifty ended at 15,699 — close to its resistance zone of 15,700-15,750. Amol Athawale, deputy vice-president-technical research at Kotak Securities, says if the Nifty manages to top 15,750, the index could move up to 15,850-15,925. On the flip side, 15,500 and 15,400 could be strong support zones in the near term. “Fresh rounds of selling are possible only after 15,400. Below that it could retest the levels of 15,250-15,150,” he observes. This month, the Nifty made an intraday low of 15,183 and a closing low of 15,294 on June 17.

Anchor lock-in for three companies to end

The 30-day lock-in period for half the shares allotted to anchor investors ends for three companies this week. The freeze on 3.46 per cent equity of Ethos and 3.1 per cent equity of eMudhra ends on Monday. The freeze on 1.5 per cent equity of Aether Industries ends on Thursday. In the past, shares of companies tended to come under pressure around the end of the anchor lock-in period. At present, shares of Ethos, a luxury watch retailer, and eMudhra, a digital signature provider, are down 9.2 and 6.5 per cent, respectively, over their issue price. Shares of Aether, a specialty chemicals company, are up 19 per cent.