WEEKLY TRENDSETTER (April 14th,2023)
| 2023 | Mar 31 | APRIL 7 | Ch % |
| NIFTY | 17360 | 17599 | 1.38 |
| BANK NIFTY | 40608 | 41041 | 1.07 |
| USD/INR | 82.19 | 81.88 | -0.38 |
MARKET REVIEW–The market has staged a good comeback after touching a low of 16828 and managed to sustain above 17200.The coming weeks would be critical as the results season kicks off with IT majors expected to announce their March quarter performance. Most of the IT scrips have slipped below 200-dma and the course of the index could well be dictated by the direction they take.
INTERESTING CUES
At 50 mn India has 5% of world ‘s 5G subscribers
Some interesting data is available according to which western Europe ended 2022 with 63 mn 5G subscribers (a penetration of 11.5%) despite having a head start of 2 years. Only 3 other markets are ahead of India in terms of 5G subscribers-China with 644mn (38%), North America with 141 mn(35%),N.E Asia consisting of Japan, Korea and Taiwan with 84 mn (23%).According to Ericsson, India will be behind only China by 2028.Jio and Bharti have already installed 1.16 lac towers which is 15% of all towers. The only challenge could be the capex to keep expanding as tariffs have been growing at a sluggish pace. Bharti is already facing debt pressure and VI is battling for survival.
Medical tourism can do to India what IT did
Hospital barons are urging the Govt to create infrastructure to promote medical tourism in India. In the West apparently the waiting period is 2-3 yrs due to shortage of doctors, nurses, etc. Thus, to keep pace medical education also needs to be boosted to meet demands. In times to come artificial intelligence, machine learning, robotics and genomics will take over. Robotic surgeries are on the rise.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index has seen a decent short covering and has again jumped above to the next band of 17200-800.With 17600 already seen last week, upside could be capped at 17800 unless IT majors see a major short covering post results.
BANK NIFTY-The index is now trading at near resistance levels of 41200 and upside beyond 41500 could be difficult to sustain. Some profit-taking could take the index down to levels of 40500.
PICKS FOR THE WEEK-
BHEL-(70.6)-The scrip has seen a decent correction from 91 to 67 and looks set to regain some of the lost ground. While a target of 80 could be expected, if it manages to sustain above 80 for a few weeks the scrip looks poised to cross 100.
CDSL-(974)-One of the stars of the 2020-21 rally when it touched an all-time high of 1734, the scrip has seen a sharp correction losing 50% of the rise. While the scrip has still to give a confirmation of bottoming out, accumulation could be considered at declines for a possible target of 1200.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam