WEEKLY TRENDSETTER (DEC 2nd,2022)
| 2022 | Nov 18 | Nov 26 | Ch % |
| NIFTY | 18307 | 18518 | +1.15 |
| BANK NIFTY | 42437 | 42984 | +1.29 |
| USD/INR | 81.71 | 81.69 | -0.02 |
MARKET REVIEW–The week was an eventful one with the Bank Nifty hitting lifetime high and Nifty also within touching distance of the previous high.IT joined the party in aiding Nifty to post decent gains.
INTERESTING CUES
World turmoil has dented pharma companies
The pharma industry has been focussing on exports for the last few decades and has also had a successful stint. However, in the last 3 years there has been a distinct slowdown in exports due to pricing pressure in US and currency volatility. On the other hand Indian markets have seen decent growth which has offset the slowdown in exports. The Indian markets have also provided steady margin rise as 75% of the market is outside price control which enables Indian companies to take 8-10 % price rise annually.
Gujarat takes lead in rooftop solar
The State accounts for more than 80% of solar roof top installation in the country. The next 2 states following are Kerala and Rajasthan. Overall, the rooftop installation of 5.87 GW has been way below the Govt s target of 40 GW. Gujarat also accounts for 43% of allocation of the projects allocated to the State distribution companies(discoms) under the Solar Rooftop programme, Phase II with Maharashtra accounting for 14.2% share though installations are way below par in the State.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index posted a strong closing and though looks overbought in the short term; it looks poised to go past 18600.Levels of 18300-350 should provide strong support.
BANK NIFTY-The index clearly is showing signs of fatigue in the near term and levels of 43300 could again attract profit-taking. Large cap private sector banks have been witnessing profit-taking at higher levels which is arresting the momentum. On the downside any correction to 42500 -600 should be considered healthy.
SCRIPS TO WATCH OUT
CONCOR (762) -The stock has been on a strong uptrend. After touching a lifetime high of 829 it has cooled off. Levels of 750-760 could see buying resuming. Accordingly buying could be considered for a possible target of 850.
Indus Ind (1188)-The scrip has seen good support at around 1100 in the past few weeks. Levels of around 1150 could be used for accumulation. The scrip has potential to scale past 1250 in the coming weeks.
GSFC (132)– Fertiliser shares saw some strong buying last week. This scrip after touching a low of 120 seems to have bottomed out. Buying could be considered for possible target of 155-160.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam