WEEKLY TRENDSETTER (MARCH 17th,2023)
| 2023 | Mar 3 | Mar 10 | Ch % |
| NIFTY | 17594 | 17413 | -1.03 |
| BANK NIFTY | 41251 | 40485 | -1.86 |
| USD/INR | 82.05 | 82.06 | 0.01 |
MARKET REVIEW–The recovery was short lived and as expected 17800 proved difficult to cross and the indices lost ground to end in the negative as global markets were also not supportive with banking tremors felt in US. The beginning of the next week will again challenge previous week’s lows and 17000 and 39500 on the respective indices now come under threat.
INTERESTING CUES
S.V. Bank popularly known as Silicon Valley Bank went bankrupt when it failed to meet obligations of $42 bn which the investors tried to pull out following a letter sent by the CEO of the bank stating that the bank had suffered $1.8 bn loss on sale of US treasuries and mortgage backed securities and outlined a plan to raise upto $2.25 bn to shore op its finances. In a bizarre turn of events, the bank went belly up even as it was featured in the Forbes magazine 2023 as one of America s best banks. The dramatic collapse led to a crash in US markets. The bank was into start -up funding which was drying up post Covid.
Tech Mahindra expects US revenue share to go up
Amidst all gloom and doom for the tech sector, the company expects US share of revenue to go up to 60% in the next 4 years from 48% currently. The company expects “muted growth” in 23-24 for the US markets. On the valuation front the scrip now looks attractive with a trailing EPS of Rs 60 and the price discounting the same less than 18 times.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index saw resistance emerging at 17800 and lost ground to close just above 17400.The opening for the next week could see 17255 coming under threat to begin with. Odds are high that the index could slip to levels of 17000 during the week.
BANK NIFTY-The index which was expected to lead the revival now looks vulnerable as financials saw a sell off which could continue next week. While 39600 looks vulnerable, further downside to levels of 39000 cannot be ruled out.
PICKS FOR THE WEEK-
Bandhan Bank (225)-The scrip has been steadily losing ground over the past few weeks and with stiff resistance at 240 and above levels of 200 could be touched in the coming weeks.
IPCA Labs (799)– The scrip has been losing ground over the past few months.It has now breached the critical level of 800.It could gradually drift down to levels of 780 where one could start accumulating for a long run as it is approaching oversold levels on long term charts.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam