WEEKLY TRENDSETTER (JAN 7TH,2022)
| 2021 | DEC 31 | JAN 7 | Ch % |
| NIFTY | 17354 | 17813 | 2.64 |
| BANK NIFTY | 35481 | 37739 | 6.36 |
| USD/INR | 74.30 | 74.30 | 0.05 |
MARKET REVIEW–The New Year began with a bang with the banking counters leading the charge. The FII also resumed buying which buoyed sentiments further.
INTERESTING TIDBITS
1.Renewable power generation growth rate overtakes thermal
While the growth rate of thermal power generation was 12% in the 20-21 period the same was 17% for renewable power. The period has however been difficult for the sector as on one hand surging gas prices and dwindling coal supplies hit thermal units in 2021, demand also fluctuated due to lockdowns.The trend however seems to be clear as renewable power gradually gathering steam once full-fledged operations resume.
2.Textiles on a comeback trail
Several triggers are responsible for this. Firstly, the US -China trade resulted in additional duties on Chinese imports which forced US importers to scout for suppliers elsewhere. Secondly Covid has disrupted supply chain for several countries which forced them to look for alternate suppliers. All this has resulted in a surge in cotton and yarn exports from India which stood at 34% CARG in the FY19-21 period. India has also seen an increased demand in the made-up segment being the 2nd largest supplier after China as Chinese players have lost out on the international markets.
MARKET OUTLOOK.
Some technical cues are as follows going by market trends: –
NIFTY– The index did better than expected and resistance levels above 17700 was breached as it closed at 17812.Any uptrend from here could see resistance at levels of 18200 and on the lower side 17500-600 should act as support.
BANK NIFTY -The sharp rise in the index was clearly a surprise as it not only went past the expected resistance levels of 36000, it went on to touch 38000 which was largely due to short covering as the index was largely underperforming and shorts were squeezed out. Some cooling off could see support emerging around 36600 while levels of 38200-500 could see profit -taking.
SCRIPS ON RADAR
The New Year party continued in the 1st week of 2022. Some scrips which could be looked at are as follows: –
Timex Group (93)-This scrip has seen a multi-year breakout above 78 and consolidating above those levels for the past few weeks. Ideally accumulation should be considered as the scrip has the potential to touch levels of 120-25 in the coming weeks.
Surya Roshni (516)-The scrip was recommended earlier around 800 levels a few months back. However, since then it has seen a sharp correction slipping below the 200-dma of 552.The long-term trend still remains intact and this could be a corrective phase of the rise from 62 to 868 in the earlier months. Considering the near-term weakness 475-500 levels could act as a strong support zone. Accumulation could be considered at declines.
Wishing all readers, a very happy New Year. Retail has been the backbone of the rally in 2021 and this trend could continue in the coming years as equity investing attracts the young and old alike.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam