WEEKLY TRENDSETTER (OCT 2nd ,2021)
| 2021 | SEPT 24 | OCT 1 | Ch % |
| NIFTY | 17853 | 17853 | -1.80 |
| BANK NIFTY | 37830 | 37830 | -1.60 |
| USD/INR | 73.48 | 73.48 | 0.86 |
MARKET REVIEW–The markets were in a profit-taking mood and closer to levels of 18000 on the Nifty, sellers became active.Global markets were also not supportive for any uptrend.
DID YOU KNOW
Super apps race is on and a desi Amazon could emerge soon
The ultimate digital challenge is development of a Super App which will be a single point contact for customers’ requirements like automobile, domestic appliances, groceries, clothing, financial products, etc. Expectedly Tatas and Reliance are in the forefront. However, with the tech prowess captively available the Tatas are expected to come out with a Super App which will embrace its divisions like Cliq, Croma, Tanishq, Big Basket,1mg, to begin with. In the last 18 months with people cooped up at home thanks to Covid, ordering online has become a habit which is likely to sustain even when things open up fully.
Discoms have their share of woes
The State owned power distribution companies are always in limelight for the wrong reasons like default or delay in paying power financing companies.However,the reasons behind them need to be addressed to ensure viable discoms.As per stats available several State Govt departments owe these discoms around Rs 97000 cr and subsidies due from the State Govts are estimated at around Rs 61000 cr.Discoms are required to publish their quarterly and annual accounts and are also mandated to clear their dues to power generating and transmission companies. Only those discoms and states that meet the pre-qualifying criteria would be eligible and funds released for the infrastructure works by PFC and REC.Thus while serious issues like power theft are being addressed by installing prepaid meters, the above malaise appears to be more serious in nature as it could derail power reforms.
MARKET OUTLOOK.
The Sept month saw a 2.8% gain on the Nifty and this was despite profit-taking in the last week. The trading saw some interesting pattern as new flavours were power, energy and PSU banks while IT saw some profit-taking. Oct series would be largely driven by Sept quarter results beginning with the IT pack. The near-term technical indicators are in a over bought state for more than 2-3 months with monthly RSI at a dizzy level of 85 leaving little scope for any disappointment from the results front. The small and mid-cap space though still has pockets which look attractive and several “new age “companies have emerged which hold immense long-term potential.
Some technical cues are as follows going by market trends :-
NIFTY -Near term resistance could be at 17800-900 on the Nifty and support should be around 17200-300.
BANK NIFTY -Levels of 36700-900 could be near term support and levels 37700-900 could see profit-taking
Scrips to watch out
Couple of technical set-ups are discussed with potential trades for the coming week: –
Surya Roshni (829)-After a strong break out past 650 the scrip is now readying itself for a further upsurge which could potentially take it to the four-figure mark. Considering the steep run up already, steady accumulation could be considered for a possible target of 975.
Praj Inds (350)-After witnessing a stunning rally in the last 18 months the scrip went into a consolidation mode and has settled around 340-50. Accumulation could be considered for possible target of 400-450 in the coming weeks.
The economy is opening up and restrictions on travel are gradually getting relaxed. While the Covid 3rd wake still looms large one has to stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam