Book profits after listing gains in Tatva Chintan: Kranthi Bathini

Benchmark indices extended gains in afternoon trade with the Nifty inching higher around 15,800 led by IT, metal, financials. Nifty Metal index was up sharply by 4%. Realty and IT stocks also leaped over 1% each. Hindalco, Tata Steel, JSW Steel and Tata Motors were among the top gainers in Nifty while Maruti, Power Grid and Cipla led the pack of laggards. Kranthi Bathini of Wealthmills Securities spoke to Money9 to share insights on the market momentum going forward.

“Markets have been facing stiff resistance around 15,900. Global factors, relentless selling by FIIs, also some hedge funds are booking profits and all of this together is leading selloff in the markets. Domestic institutional investors and retail investors are still actively investing. Another big reason is that money is being pulled in the primary market space”, he said.

On the new listing of Tatva Chintan IPO, the shares extended rally after stellar debut, rising as much as 130% to hit a day’s high of Rs 2,486.

Bathini believes the primary market is abuzz with retail frenzy. He believes investors should take profits after such sharp listing gains and then look at entering on dips once the stock cools off.

“Be selective in the IPO space, do not blindly invest in all IPOs”, he said.