WEEKLY TRENDSETTER (APRIL 22nd,2022)
| 2022 | April 15 | April 22 | Ch % |
| NIFTY | 17784 | 17475 | -1.74 |
| BANK NIFTY | 37752 | 37463 | -0.77 |
| USD/INR | 75.86 | 76.16 | 0.40 |
MARKET REVIEW–The truncated week saw the bulls trimming positions ahead of the long weekend. The IT results began on a subdued note and going into next week that could have a bearing on the market. The banking counters could have a tricky pitch going ahead as murmers of a rate hike is increasing.
INTERESTING TIDBITS
TRAI s recommendations on 5G spectrum pricing below telcos expectations
The recommendations made by TRAI last week was at a discount of 36% to its recommended price in 2018. However, going by recent auction trends world over, the telcos would be looking for more attractive base prices. Another spot of worry for telcos is allowing private networks, a trend which has caught on abroad. For instance, Germany has already issued 5G private network licences to over 33 companies — among them BASF, BMW, Bosch, Siemens and Volkswagen. But Nokia, for instance, has deployed a private wireless network in its Chennai factory and has seen 31 % labour time reduction due to robotic automation — a clear example of what a private 5G network can do. According to Trai, in over 55 countries, 626 organisations have been granted licences to run a private network on LTE or 5G.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The Nifty saw sharp selling pressure emerging above 17700 and going into the long weekend, the closing was below 17500. While the banking counters remained relatively steady IT counters could get into correction mode which could put pressure on the indice. Ideally 17250-300 should see some support while any bounce above 17550-600 could see selling pressure.
BANK NIFTY-A strong resistance is building at around 38000 and this has lead the index to head south and levels of 36800 could be touched next week which is the 200-dma while any levels above 37500-600 could see selling pressure.
SCRIPS TO WATCH OUT
INDIGO (1898)-The previous week saw repeated selling pressure above 2000 and the closing suggested that the downward move could extend to levels of 1800 in the coming days. Selling could be considered around 1930-50.
Power Grid (229)-The scrip has had a great April series but last week saw some long unwinding which could push the scrip down to levels of 220.Ideally 215-220 should act as a good support area where buying could be considered for possible target of 245-50.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam