WEEKLY TRENDSETTER (DEC 24th,2021)
| 2021 | DEC 17 | DEC 24 | Ch % |
| NIFTY | 16985 | 17004 | 0.11 |
| BANK NIFTY | 35618 | 34857 | -2.14 |
| USD/INR | 76.00 | 75.00 | -1.32 |
MARKET REVIEW–Another week of volatile trading which however saw good recovery after Nifty touched a low of 16410 on Monday.IT was the backbone of the recovery and though the FII selling continued, the rupee saw good recovery over the week which was encouraging.
INTERESTING TIDBITS
Vedanta acquires nickel and cobalt producer Nicomet
With nickel prices hardening with its use in production of stainless steel and also used in EV vehicle manufacture, the acquisition is an opportunistic one as the company was also under NCLT.Besides the company also has the capacity to manufacture cobalt which finds use in lithium -ion batteries for EVs, energy storage systems and in super alloy for steel making. The plant has been closed since 2018 and expected to be restarted in 2022.
Cyber security logs in 40% CAGR growth in 2 years
One interesting silver lining of the pandemic was the surge in demand for cyber security products which saw domestic revenue touching $9.85 bn in 2021. The global cybersecurity market is expected to grow from around $217 bn in 2021 to $345 bn in 2026.Thus for India this provides a significant opportunity and there could be an exponential growth in the coming years. In the listed space we have Quickheal Tech which has seen sequential improvement in performance and with no debt and good cash generation it also went in for a buy back a few months back. Clearly a stock to be kept on radar.
MARKET OUTLOOK.
Some technical cues are as follows going by market trends: –
NIFTY– The index touched 16410 as expected and some short covering saw it recovering to 17150 before it finally closed just above 17000 for the week. Going into the New Year the market could see low volumes and a range of 16700-17100 could be expected in the monthly expiry week.
BANK NIFTY -The index has been relatively week and after an engulfing bearish weekly pattern in the previous week it continued to face resistance at the 200-dma. The fall could continue and levels of 32600 expected over a period of time. Caution is clearly advised as the New Year could see some interest rates hardening.
SCRIPS ON RADAR
GATI (189)-The scrip was in a consolidation mode in the band of 130-180. Last week it saw a breakout past 180 on good volumes. The scrip could be an outperformer in the coming months and on any dips could be accumulated with a target price of around 250-275.
Bharti Airtel (677)-The scrip touched a life time high of 782 in Nov and since then has had a strong correction which saw lows of 640.Going into Jan the scrip could regain lost ground as levels of 650-660 have seen good short covering and also delivery-based buying. Since the entire telecom space could be in a buzz, the scrip could be accumulated for a target of 750.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam