WEEKLY TRENDSETTER (MARCH 12TH ,2021)
| 2021 | March5th | March12th | Ch % |
| NIFTY | 14938 | 15031 | 0.62 |
| BANK NIFTY | 35228 | 35497 | 0.76 |
| USD/INR | 73.07 | 72.71 | -0.49 |
The week turned out very similar to the previous 2 weeks in terms of price action. This was the 3rd consecutive week that the last day saw a sharp correction. The IT sector lent positive support to the index while banking, metals were seen as a drag. The rising bond yields is cited to be a reason for profit -booking but on hindsight this could be a healthy correction in the background of a steep rise in the past few months.
CORPORATES HITTING HEADLINES
GOVT ‘S DISINVESTMENT PLANS GATHER MOMENTUM
1.IDBI Bank came out of the RBI ‘s prompt and corrective action regime. This could be the pre-cursor to a stake sale in the bank. Clearly a stock to watch out.
2.The Indian Govt will sell its entire 26.12 % stake in Tata Communication partly through the OFS route and partly to Tata Sons. The stock has seen a steep run up. This could now see focus shifting to Hind Zinc in which the Govt owns 29.54% stake. The stock has seen a steady run up
3.CONCOR could be the headed for a strategic sale and going by the potential of the company, it could emerge as a value pick. It has presence in air cargo movements, bonded warehouse, cold chain services, integrated freight terminals, coastal shipping, etc.
4.Tata Power saw some interested buying on the news that Tesla is looking to have a tie up with it for setting up battery charging stations. However, the news was denied by the company. However, the company is on a transformation mode and the recent solar initiative is also aiding sentiments. Even without a tie-up with Tesla, the company may have a pivotal role to play in the Tata Motors EV vehicle initiative. Tata Chem also has seen some aggressive buying in the past few months with its plans for lithium -ion cells for EVs.
WHAT DOES THE COMING WEEK HOLD?
1.The Central Banks of US, UK and Japan are meeting to decide on interest rates and monetary policy stance.
2. In India crude could be a potential dampener on sentiments in the coming weeks. The price of the Indian basket of crude oil stood at $67.4 as compared to $33.4 a year back. This has also resulted in retail inflation spiking in Feb ,21 to a 3-month high of 5%. The yield on 10-year Govt bonds crossed 6.27% last week. There are already hints of interest rates hardening with some banks increasing interest rates across tenures.
3.Last week it was suggested that positions could be lightened at higher levels. The correction towards end of the week clearly suggested the same. The early part of the week could again see an attempt at breaching 15100-15200 on the Nifty. Higher levels could be a struggle zone as banking and metals could see some more correction. Caution is advised though broader market continues to be healthy.
Wishing all readers, a great trading week! Great opportunities are emerging outside the large cap space! Trade light and look out for bargain counters!
Krish Subramanyam