WEEKLY TRENDSETTER (DEC 30TH ,2022)
| 2022 | DEC 16 | DEC 23 | Ch % |
| NIFTY | 18269 | 17806 | -2.53 |
| BANK NIFTY | 43219 | 41668 | -3.59 |
| USD/INR | 82.77 | 82.83 | 0.07 |
MARKET REVIEW–The correction of the previous week deepened and the banking counters were the ones which saw profit-booking with the PSU banks bearing the brunt of selling pressure. With the last week of the year ahead of us, some short covering could be expected though volumes could be on the lower side. Caution needs to be exercised at higher levels.
INTERESTING CUES
ONLY 13% OF LOANS RECOVERED (1912)
The scheduled commercial banks have written off whopping 13 lac cr in the last decade and only 13% of the same have been recovered. These were largely loans given to likes of Alok Inds, Videocon, Essar group, Bhushan Steel, Bhushan Power, Monnet Ispat among several others. These write-offs took heavy toll of the PSU Banks which made provisions for more than 5 years and only in the last few quarters enjoying some profitability. The recovery in share prices of PSU banks is largely attributed to this as inherently they were strong.
ADVANCE TAX COLLECTION SOARS (1912)
The corporation tax (3.97 trillion) and personal income tax (1.23 trillion) mopped up for the current fiscal rose 13% to 5.21 trn. The coming budget could see tax exemption limit risen on personal income tax while more strict collection measures introduced with an aim to bring more tax payers into the net.
TESLA LOSES SHARPLY IN 2022
The stock has lost 50% in 2022 and still trading at 30 times the projected earnings against S&P Index’s 17 times projected earnings. With demand slump in China, analysts predict 2023 to be even more challenging as the company grapples with slowdown in US as well.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index saw a sharp cut for the week and closed sharply below 18000 which was expected to act as a support. While some bounce cannot be ruled out levels of 18200 and above could meet with stiff resistance.
BANK NIFTY-The index fell through critical support levels and lost 1000 points in the last 2 days of the week. Some support around 41500 should come and levels of 42600 and above could attract selling again.
SCRIPS TO WATCH OUT
Havells (1100)-The scrip has been underperforming the market for the past few weeks and now looks set to breach its strong support levels of 1050-60. In the near term a bounce to levels of 1130-40 cannot be ruled out where selling could be initiated for possible levels of 1000 in the coming weeks.
IRCTC (607) -The scrip has been struggling to stay 650 and with the breaching of 650 looks heading for levels of 575 in the near term. Selling could be considered around 615-620.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam