Uncertainty in financial markets and fears of a possible global recession have compelled investors to look at safer havens atleast in the short term. With trends ever changing, the Russia invasion of Ukraine in 2022 was the primary reason for spiral in global inflation as gas and crude oil prices spiked sharply along with agri commodities. The escalation is still seen as a threat in the new year. Any positive developments like a cease -fire could also see equity markets regaining strength. Till then bullion could continue to be the investor’s safe option.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index saw a reversal of almost all the gains of the previous week and levels of 17775 will be critical in the coming week.IT companies will kick off the result season and the reversal in these counters reflects the cautious approach of investors. Upside seems capped at around 18100 in the near term.
BANK NIFTY-The private sector banks were the ones which witnessed sharp profit-taking while the PSU banks were more resilient. The index will be looking for support at around 42000 and upside should be capped at 42800-43000.
PICKS FOR THE WEEK
Salzer Electronics (298)-The scrip saw a strong break out past 290 during the week. Ideally 275-80 should provide decent support for the scrip. Buying could be considered at declines for a possible target of 350 in the coming weeks.
TVS Srichakra (3677)-The stock has mirrored the strong trend in tyre stocks and has seen buying at every decline. Volumes are low and as such buying should be considered gradually. Levels of 4500 could be seen in the long run.
Wishing all readers, a very Happy New Year with good health, peace, and prosperity!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam