WEEKLY TRENDSETTER (MARCH 24TH,2023)
| 2023 | Mar 10 | Mar 17 | Ch % |
| NIFTY | 17413 | 17100 | -1.80 |
| BANK NIFTY | 40485 | 39598 | -2.19 |
| USD/INR | 82.06 | 82.50 | 0.54 |
MARKET REVIEW–The market exhibited bouts of volatility on all days but the pressure at higher levels was very much evident. While 17000 was breached on the Nifty,38600 was almost breached on the Bank Nifty.
INTERESTING CUES
SIPs going strong amidst market correction
In what is slowly becoming the backbone of Indian markets the retail investor is now showing signs of riding volatility in the markets rather than get swayed out of the market. The Feb figure shows that the SIP has touched a new high of 17% of the MF AUM. Nearly 7 out of 10 SIP accounts are equity oriented active MF schemes. In the past one-year SIP AUM has risen 23% while overall AUM has gone up only 5%.SIP investors allocated over Rs 11000 cr every month to MFs in the past 12 months. If the retail is able to brave a stronger correction, the bull market revival could be very strong.
RBI declines Bajaj Finserv’s application for lending business in Philippines
The reason cited is that Philippines comes under active monitoring of FAFT (Financial Action Task Force) grey list country. FAFT is the global watchdog for money laundering and terrorist financing activities. Bajaj Finserve is the holding company of all financial services activities of the Bajaj group. There are 7 companies under company namely-Bajaj Finance, Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance, Bajaj Finserve Direct, Bajaj Finserve Health, Bajaj Housing Finance and Bajaj Financial Securities. Apart from these Bajaj Finserve has 2 fully owned subsidiaries -BFS Asset Management which recently got MF licence and BFS Ventures which is in the process of setting up business. The company is debt-free.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The 17000 mark was breached on 4 days during the week and is becoming increasingly vulnerable. Downside hints at levels of 16500 in the coming weeks.16800 holds good support in the near term in March.
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. The recent low of 38613 is likely to be revisited and downside levels of 38000 cannot be ruled out.
PICKS FOR THE WEEK-
Dabur-(536) -An underperformer for several months, the scrip is now taking support near long term support averages of around 525.Buying around these levels could be considered for a possible target of 575-80 in the coming weeks.
Nitta Gelatine (748)-A stock which is defying the market correction as it approaches life time high. The counter has low volumes and thus investors with a long-term horizon could accumulate at declines. Levels of 900 could be touched in the medium to long term.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam