WEEKLY TRENDSETTER (Oct 7th,2022)
| 2022 | Sep 23 | Sep 30 | Ch % |
| NIFTY | 17327 | 17094 | -1.94 |
| BANK NIFTY | 39546 | 38632 | -3.07 |
| USD/INR | 81.05 | 81.46 | 0.51 |
MARKET REVIEW–The market slide continued with FII selling pressure and global cues continuing to be negative. Post an expected 50 bps rate hike, there was a short covering rally which pared some of the losses.
INTERESTING CUES
1.Domestic investors have provided cushion to aggressive FII selling
Till a few years back the domestic bourses were highly dependant on FII inflows and any aggressive selling used to see sharper cuts. The scenario has been changing in the last couple of years with a new generation of investors entering the market. There are 2 options available to investors in mutual funds -regular and direct. Under regular the conventional route of investment through distributors still continues. Under the direct route the investors can invest through the fund houses or even through the more popular fintech apps like Groww, Zerodha and Paytm. The advantage of directly investing is that the investor saves on commission.
2.Real estate on a strong comeback
Post the lull in the 2 years due to the pandemic, the real estate market has seen a sharp growth with residential launches growing by 61% in the July-Sept 22 quarter as against the corresponding previous quarter. Mumbai and Pune contributed to 53% of the sales. Properties sold in the price range of Rs 45-75 lacs accounted for nearly 30% of the sales.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-For October the previous support of 17500 should provide the maximum resistance. The banking counters should again provide support to the index with IT and metals likely to be a drag. Pharma and consumer goods could provide fillip to the index. While the 17000 level also remains vulnerable, any downside could see the index sliding to 16400 levels.
BANK NIFTY-The level of 40000 should act as a resistance level for the month of Oct. Any downside should find support at around 35500-36000 levels.
SCRIPS TO WATCH OUT
Granules (345)-In the market correction the scrip has found repeated support at around 300-310.The scrip ended the week with a breakout which augers well for the coming weeks. Levels of around 330-40 can be used for accumulation. Levels of 380-400 could be seen in the coming weeks.
IPCA Labs (916)-Though the scrip has been an underperformer in the last few months, long term charts suggest that a bottom formation is in progress and levels of 850-880 should provide good support. Market correction can be used to accumulate the scrip for a possible target of 1000 in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam