WEEKLY TRENDSETTER (JAN 20th,2023)
| 2022 | JAN 6 | JAN 13 | Ch % |
| NIFTY | 17859 | 17858 | -0.01 |
| BANK NIFTY | 42189 | 42082 | -0.25 |
| USD/INR | 82.75 | 81.58 | -1.41 |
MARKET REVIEW–The week was highly volatile and though global markets were by and large positive, Indian markets showed weakness and sharp selling was witnessed at higher levels. However, the closing provided some relief to the bulls as short covering came to the rescue and the indices closed flat. The rupee showed some gains which provides hope going into next week.
INTERESTING CUES
OMCs to submit green hydrogen plan
This will be critical going forward for OMC s which have been battling high crude prices, rupee weakness and uncertain future with EV gradually forging ahead and other alternative fuels looking more promising. The Govt is also announced roll out of E20(20% blending of ethanol in gasoline) in phases from April 1. There could be an initial challenge of whether the existing engines will be able to cope with this blending. The Govt is confident that there is enough technology to deal with this adjustment which will be required. Every 10% of biofuel blended in petrol saves the country Rs 40000 cr worth of crude imports.
PSU Banks results will be keenly awaited
The PSU banks hogged the limelight in 2022 as stocks zoomed on the back of improved numbers largely due to lower provisions for NPA s. However with interest rates hardening the coming quarters could be keenly watched as NIMs could soften .
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index breached the 17800 level but managed to close above that with buying coming into IT large caps which announced results over the week which were better than expected. Metals were also positive and aided gains. The coming week could see consolidation as the market starts to discount quarterly results as well as built in budget expectation.
BANK NIFTY-The private sector banks were the ones which once again witnessed profit-taking while the PSU banks were more resilient. The index will be looking for support at around 42000 once again and upside should be capped at 42800-43000.
PICKS FOR THE WEEK
BHEL (80.70)-The scrip has been showing good support emerging around 75-80 and could be a decent accumulation candidate for a possible target price of 90-95 in the coming days.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam