WEEKLY TRENDSETTER (JULY 30th ,2021)
| 2021 | JULY 23 | JULY 30 | Ch % |
| NIFTY | 15856 | 15763 | -0.59 |
| BANK NIFTY | 35034 | 34584 | -1.28 |
| USD/INR | 74.43 | 74.34 | -0.12 |
MARKET REVIEW –The market settled lower for the week and pharma was the big drag after several months. Metals managed to keep the balance and finally losses on the Nifty were minor.
BACK TO RESULTS (JUNE QTR)
With the mid-cap and small cap witnessing a great rally time to catch up on the results which will give cues on moves ahead! Broadly results should be seen sequentially rather than y-o-y as the June ,20 quarter was a wash out for most companies as it was the first Covid affected quarter.
Rs in cr, Bracket indicates ch in % against March,21 quarter
| Company | Revenue | Net profit |
| Container Corp | 1819(-7) | 251(+999) |
| Mahindra CIE | 2042(-6.7) | 136(+999) |
| Jubiliant Ingravia | 1138(+68) | 168.3(+209) |
| FSL | 1485(+2.4) | 133.7(+186) |
CONCOR (644)- Besides providing inland transport by rail for containers, Concor is also into the management of ports, air cargo complexes and establishing cold chains. The June quarter bump up in profits are largely due to a sharp fall in expenses as well as an exceptional write off in March ,21. While imports have been sluggish, export volumes have picked up .68% increase in domestic throughput has been seen. Freight rates have not been raised. Export loading of expenses are also one of the reasons cited for margin rise. More importantly the dedicated freight corridor has started in July and this is expected to improve movement of goods. Eg: Time taken to transport from Mundra to Delhi could fall sharply in the coming days. Asset utilization is expected to improve.
Mahindra CIE (269)-The June quarter bottomline has been largely buoyed by a sharp fall in tax provision. Infact PBT is also lower at 169.6 cr (-16%). However, prospects look bright for long term.
Jubiliant Ingravia (594)-The company is into 3 segments namely speciality chemicals, nutrition and health solutions and life science chemicals. The quarter saw a robust growth in revenue and profits .EPS for the quarter was Rs 10.60. With all these sectors offering growth potential, clearly a scrip to be kept on radar.
FSL (194)-The June quarter was flat compared to the March quarter. An exceptional write off of Rs 109.90 cr in the March quarter pulled down profits. However, the company’s broader theme is “unlock human potential through automation”. The program equips employees, even those without a programming background, to identify automation opportunities and build solutions. Prospects look bright as topline is on an aggressive growth path and profits clock in steadily.
MARKET OUTLOOK.
1.The Asian markets have seen a serious meltdown on the back of some crackdown measures announcement by China. This has also seen its impact domestically where FII s have largely been sellers.
2.The coming week see results from several frontline stocks like HPCL, Apollo Tyre, Bharti Airtel, Tata Comm, Godrej Consumer, GAIL, Cipla, TataChem, Hindalco, SAIL, NALCO, BEML besides a host of others.
3.The level of 15650 has proved to be a decent support in the last few weeks. However, call writers are increasingly becoming aggressive at 15900-16000 levels. Another range bound week is expected
Results will again be critical for sustenance of the sharp rally in many scrips. Broadly results should be seen sequentially rather than y-o-y as the June ,20 quarter was a wash out for most companies as it was the first Covid affected quarter.
Some technical cues are as follows going by market trends
Scrips to watch out
The mid-cap and small-cap rally have been breathtaking in the last 18 months. However, some caution also needs to be exercised. Several stocks have risen sharply and look overbought. Investors should not get carried away by chasing many of these. Trade but also exercise caution. Following scrips look promising with a small to medium term horizon.
Electro steel Castings (38.3)- This scrip has been trading in the 35-40 band in the last few weeks. Uptrends have been on huge volumes. The scrip looks poised to cross the 40 level in the coming weeks and could head towards 50.
Orient Paper (31.50)-Paper shares have been the flavour of the markets in the last few months. The momentum is likely to increase in the coming months. Ideally accumulation should be considered. Levels of 45-50 could be be seen in the long run.
There is still a lingering fear that the 3rd wave of Covid could be round the corner. Optimism is however prevalent going by crowded tourist spots. Stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam