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NSE shares surge then slip, closing below key weighted average
The stock hit an intraday high of ₹1,878 on the BSE, then finished at ₹1,817, below the ₹1,841.5 average weighted price.
NSE shares extended gains after a flat listing, but the move faded quickly as profit-booking set in, according to LiveMint Markets. The stock touched an intraday high of ₹1,878 apiece on the BSE and finished at ₹1,817, up ₹17 from the listing price of ₹1,800. Allottees received a ₹93 per share listing gain from the move.
LiveMint Markets said the shares are trading above the listing price, but below the average weighted price of ₹1,841.5, a setup experts linked to more sellers than buyers. The article warned that if the stock closes below that weighted average, further downside could follow, potentially pushing shares below the upper IPO price band of ₹1,785.
The outlet quoted Arun Kejriwal, founder of Kejriwal Research and Investment Services, saying the day’s closing price is important and that a close below the ₹1,841.5 weighted average could take the stock below ₹1,785. Kejriwal also said the downside may be limited because NSE is viewed as a proxy for Indian growth, including GDP and the capital markets, and that high demand could keep the shares volatile.
LiveMint Markets noted that PL Capital has initiated a buy call on the stock with a ₹1,950 target, while also pointing to the prospect that buying below the upper price band, if it occurs, could make it more likely to generate 20% or higher yearly returns. It also said some investors held back from the IPO subscription partly due to expectations around the price band.