Market volatile, may touch new high soon

MARKETS have been super volatile and even after a tsunami hit them last Friday, they have not only bounced back but have actually gained in the six-day period ending 3rd March. BSE Sensex gained 1,693.24 points or 3.29 per cent to close at 51,444.7 points while Nifty gained 537.80 points or 3.53 per cent to close at 15,245.6 points.

The significant part of this rally is that we saw a 1000-point gain on Wednesday followed by a small up-day on Thursday, and then a tsunami on Friday where BSE Sensex lost 1,940 points while Nifty lost 568 points. The first three days of March have been spent in recovering from the losses of Friday's massive fall and resilient markets have more than recovered the same. It is important to mention here that while 1000 points sounds big, it actually is 2 per cent of the current value of BSE Sensex. However repeated moves of 2 per cent indicate extreme volatility.

In primary market news, shares of Nureca Limited listed on Thursday the 25th of February and gained 66.66 per cent on day one. The stock hit an upper circuit of 5 per cent on the next two days as well. On Tuesday things reversed where after the upper circuit, shares were locked at the lower circuit. The lower circuit continued today as well and shares closed at Rs 663.30 on BSE and Rs 642.55 on NSE. These levels are marginally lower than the opening day. Five trading sessions are over and another five remain when the share would trade in the trade-to-trade category.

The second issue to list was RailTel Corporation Limited where shares were issued at Rs 94. The share was on an uptrend and saw some profit taking today. The shares have closed at Rs 165.60 having gained Rs 71.60 or 76 per cent. Investors who were lucky to have been allotted shares have done well for themselves.

The issue from Heranba Industries Limited did well for itself and was subscribed 83 times with QIB portion subscribed 67.45 times, HNI portion subscribed 271.15 times and Retail portion subscribed 11.84 times. There were 14.55 lakh applications. The issue would list on Friday the 5th of March.

The issue from MTAR Technologies Limited has opened for subscription today and will close on Friday the 5th of March. The price band is Rs 574-575 and consists of a fresh issue of 21.48 lakhs and an offer for sale of 82.24 lakh shares. The company had earlier allotted 31,11,725 equity shares to 15 anchor investors comprising 44 entities. There would be another IPO opening from travel portal, Easy Trip Planners Limited which is tapping the capital markets with its offer for sale in a price band of Rs 186-187. The offer for sale is to raise Rs 510 crore and would open on Monday the 8th of March and close on Wednesday the 10th of March. Markets continue to show a lot of strength and resilience and demonstrated the ability to bounce back from setbacks as witnessed last week when markets suffered a setback. The rebound is strong and indicates that further upside cannot be ruled out. Readers would recall that last time I had mentioned that we could in the first fortnight of March hit new lifetime highs. That possibility exists and is just over 2 per cent away from today's close.

It would be a good strategy to continue booking profits at every available opportunity. This would allow purchases at lower levels when opportunity presents itself. With the kind of volatility currently being witnessed, trading opportunities exist on a daily basis. Trade cautiously but continue booking profits.

(The author is the founder of

Kejriwal Research and Investment Services, an advisory firm)