Street signs: Nifty may see healthy run, defence stocks, and more

Nifty likely to see healthy run 

The Nifty 50 index closed the December series with the gains of 7.6 per cent at 13,981, its third consecutive series of gains. The rollover data suggests that the positive momentum could continue in the ongoing January series as well. The option data is scattered at different strikes and suggests a wider trading range between 13,500 and 14,500, analysts said. The Nifty could rally towards 14,200 and 14,500 if it holds above 13,850 levels, while on the downside major support exists at 13,777 and 13,700 levels. The Bank Nifty, which closed the December series with gains of 5.8 per cent at 31,264 levels, may also continue its positive momentum towards life-time high of 32,613.

Atmanirbhar boost for defence stocks

Public sector (PSU) defence equipment-making companies gave good returns to investors in 2020 amid the LAC standoff with China and the subsequent measures to push indigenisation in defence production. The shares of Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Mazagon Dock, and Mishra Dhatu Nigam rose 15-30 per cent last year. However, analysts advise caution as the government finances are constrained and these companies may have cash flow problems even if they bag orders. "There is also the risk of ESG funds shying away from investing in these companies," said an analyst.

On the waiting list 

Not just listed companies have faced delays in their periodic filings because of the pandemic, but the Securities and Exchange Board of India, too, is yet to disclose its 2019-20 annual report. It usually appears on the website by August. The report has already been finalised, but needs to be placed in Parliament before it can be made public. That may be some time away as the Winter session has been cancelled. The last time there was such a delay was in 2008. The board for its part had approved the annual report on June 25.