WEEKLY TRENDSETTER (Oct 28th,2022)
| 2022 | Oct 14 | Oct 21 | Ch % |
| NIFTY | 17186 | 17576 | 2.27 |
| BANK NIFTY | 39305 | 40784 | 3.76 |
| USD/INR | 82.21 | 82.70 | 0.60 |
MARKET REVIEW–The week turned out to be much better than expected. The banking pack led from the front with stellar quarterly results from likes of Axis, Indus Ind, Canara and a few others, the rest of the market was largely mixed with metals clearly showing signs of weakness.
INTERESTING CUES
Piramal Pharma-The demerged entity of Piramal Enterprises got listed last week. The company has an interesting mix -CDMO (contract development and manufacturing) vertical accounts for 59% of revenue, complex hospital generics (CHG)30% and India consumer products business,11%. The CDMO and CHG divisions faced headwinds due to exchange fluctuation. However, the management is confident that post the Covid-19, focus is back on regular treatment which should keep demand buoyant. The company plans to invest 1200 cr in manufacturing over the next 12-18 months. The next couple of quarters will throw light on the performance front and the way ahead. While the stock has slipped to 170 post the listing price of 195, it should be kept on radar.
G-20 summit in India -Dec will see India hogging global attention as the G-20 summit kicks off. In all 200 meetings are planned in a year long schedule. The group includes both highly industrialized countries and emerging economies which totally control 80% of global trade. The summit will enable India to showcase its capabilities to create manufacturing base for facilities ranging from defence, electronics to pharma and chemicals as this has been the focus under the “Make in India “initiative.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The closing for the week above 17500 should give confidence to bulls and going into expiry, levels of 17800 could be scaled.
BANK NIFTY-The level of 40000 was expected to act as resistance level for the month of Oct. However, going by the strength 40000 could now act as the support and odds are high that the index will scale past 41500 in Nov and make an attempt to go past the all-time levels of 41840.
SCRIPS TO WATCH OUT
Polycab(2697) -After a 12 month range bound movement the scrip is showing signs of breaking out past 2800 levels. The scrip has showing good buying support around 2500 levels. Buying can be considered for a possible target of 3000 in the coming weeks.
Bank of Baroda (144)-The scrip has been exhibiting buying strength in the range of 130-140 and with a new 52-week high looks poised to touch levels of 160-170 in the coming weeks. Buying can be considered at dips.
Have a great trading week!Wishing all readers a very Happy Diwali !
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam