Street signs: Arbitrage opportunity in Escorts, bonanza for Havells & more

Can Nifty hold on to 16,000? 

With investor sentiment turning bearish, many are fearing that the Nifty50 index could slip below the 16,000-mark. Vijay Dhanotiya,  Lead-technical at CapitalVia Global Research, says the index has failed to hold on to its support of 16,400 and the next key support is 16,000. “If the market is not able to sustain above the level of 16,000, it could correct till the level of 15,600,” he says. The index closed at 16,245 on Friday, down 11 per cent over its 2022 peak of 18,308. “The immediate resistances for the Nifty are now seen around 16,500 and 16,800, which needs to be taken out with broader market participation for a reversal of the trend.  On the flipside, the immediate downside levels are seen around 16,000 and 15,800,” adds Ruchit Jain, lead research, 5paisa.com.

Arbitrage opportunity in Escorts

Brokers are advising their clients to monitor share price of Escorts in order to cash in on the arbitrage opportunity created by the ‘open offer’. The promoter of the company will soon launch an open offer to acquire 26 per cent stake in the company at Rs 2,000 per share. Shares of the company last closed at Rs 1,827. Analysts say the acceptance ratio in the open offer , which opens on March 14 and closes on March 28, will be between 70-90 per cent. They say if the discount between market price and open offer price remains attractive during the open offer period, they can tender buy from the secondary market and tender in the offer.

Personal care bonanza for Havells

The personal care appliances market, especially the men’s grooming segment, has seen a strong growth over the past few years. The positive triggers being limited access to salons and beauty parlours during Covid. Also, easier access to personal care appliances via e-commerce channels, affordable price points, and a rising focus on male grooming. A report by ICICI Securities says the personal care appliances market has grown at an annualised rate of 17 per cent between 2018 and 2020. During this period, the market size has expanded from Rs 3,200 crore to Rs 4,400 crore. Analysts say the segment would continue to see strong growth. In the listed space, Havells India could be a prime beneficiary of this trend as the company’s trimmers are being well received by the market.