January 9 ,2021
WEEKLY TRENDSETTER
Another week and another round of healthy gains for the market .The nature of the rally was interesting as heavyweights like RIL, HDFCBank ,Kotak Bank were witnessing profit-taking at higher levels .Metals were at their best form and IT was in fine fettle on the eve of TCS results .
Mid -cap and small caps continued to bask in glory and the steam is unlikely to end anytime soon and continued participation is expected.
BIG PLAYERS ACTIVITIES
The FII s continue to be on a buying spree over the week and infact closed the week with the highest buy figure . DII s were more focused on profit taking .
Can there be smoke without fire ?
Attention is once again on select midcap and small caps which have seen sudden spurt in volumes in the last few weeks :-
Karnataka Bank -Renewed interest was seen in the counter .Recent management commentary seems to suggest credit growth to be in double figure in FY22 .FY21 could remain subdued.2-4% of the loan book could go into one time restructuring .
Deepak Fert-Post rights issue a few months back the stock was in a range .However ,with the entire fertilizer sector buzzing in action ,this premier player has seen good action .Interest costs could go down in the coming qtrs.The company has posted Rs 22 EPS for the first 6 months already !!
Rallis –The company has been showing erratic results though expectations were high.However ,the first half of FY 21 has seen a good topline and a buoyant bottomline .With almost Rs 9 EPS for the first six months ,the 2nd half results will be keenly awaited .With low interest costs,steady increase in topline and margins ,re rating could be on cards .Watch out !!
Torrent Power– Probably the best performing company in the power sector and with the sector witnessing a revival in fortunes ,this could be a strong beneficiary .
WHAT DOES THE COMING WEEK HOLD ?
1.The Dec quarter earnings season will see other IT majors HCL Tech,INFY and Wipro announce their results.Wipro has seen some strong buying interest and closed strong at 428 and the buyback price of Rs 400 pales in comparison.
2.Ktk Bank results on Jan 12 will be keenly awaited as recent management commentary seems to suggest that the worst is behind and the bank is set to regain its past glory.HDFC Bank also will be announcing results and with CASA showing a strong surge ,the disbursals could also see an equally robust figure.
3.On the market front ,sectors like fertilizer, capital goods ,auto ancilliaries are witnessing strong buying momentum and the trend is likely to continue
Wishing all readers a great trading week ! Book profits periodically ,do not go overboard but remain optimistic !!
Krish Subramanyam
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Did you know ? Dollar
index has been a point of discussion in the last 2-3 months as it has seen
some persistent weakness .While it continues to trade below 90 for the 2nd
month running ,the impact of this on export oriented industries like
software, textiles ,etc is likely to be felt in the coming months .The strong commentary from the IT sector is
holding up the stocks but the dollar weakness is probably downplayed ,atleast
for the time being .Lets keep watching !! |
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Some stray thoughts – Large investors have a strong focus on select stocks which they monitor in an indepth manner ,meet the management ,look for triggers to add on or exit and by and large stay put for the long run to reap solid returns. While watching an interview of one such value investor ,the lessons were to keep it simple ,do not overanalyze and keep a hawk’s eye on the investments. Infact the investor said he hardly tracks price movement of any other stock though remains abreast of developments in the sector/company.Finally the colour of money is the same whether one owns 10 stocks or 50 stocks !! Wise thoughts of a successful investor worth emulating ! |