WEEKLY TRENDSETTER (DEC 9th ,2022)
| 2022 | Nov 26 | DEC 2 | Ch % |
| NIFTY | 18518 | 18696 | 0.96 |
| BANK NIFTY | 42984 | 43104 | 0.28 |
| USD/INR | 81.69 | 81.26 | -0.53 |
MARKET REVIEW–It was an eventful week with both Nifty and Bank Nifty hitting life time highs. However, towards close of week some of the gains were shed as clearly, they were trading in an overbought zone. Interestingly, the mid-cap and small -cap segments have shown investor interest which should provide solace to investors stuck with some underperforming stocks.
INTERESTING CUES
HDFC Bank completes largest ever issuance by any bank
The leading private sector bank raised a whopping $1.85bn (Rs 15000 cr) at an annual coupon rate of 7.86% for which it received bids worth $2.41. This is against 7.25% offered by 10-year Govt bonds. Interestingly both HDFC Ltd and HDFC Bank have been on a fund-raising spree before the merger of the two. HDFC Ltd earlier raised Rs 55000 cr through bond issue.
Pakistan raises interest rates by 100 bps to 16%
The Central Bank has cumulatively raised interest rates by 625 basis points in 2022.
Gas prices tweaked -CGD’s benefit in the short term, gas producers in the long term
Last week the Kirit Parikh Committee fixed price band for gas prices at $4-6.5 per MMBtu. In the last revision for Oct22-March23, prices were raised by 40% to $8.57mmbtu in line with global prices. The capping of the prices will now enable city gas distribution companies to reduce prices by 25-30%. Thus, IGL and MGL should benefit as domestic gas accounts for 90% of the priority sector -PNG and CNG demand. The geopolitical situation has been the main factor in the spiralling of gas prices. With global recession looming large it remains to be seen how long it will remain at elevated levels.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index closed at a life time high though the coming week could see a more subdued trend to begin with. Levels of 18350-400 could act as a decent support zone and on the higher side 18800 should act as a near term resistance.
BANK NIFTY-The index has seen a relentless run up and the last 2 weeks has clearly seen some fatigue creep in. Levels of 43400-500 should act as a near term resistance and 42500-600 should be a decent support. With the RBI policy meet in the coming week, sharp volatility could be seen.
SCRIPS TO WATCH OUT
20 Microns (95) -After touching a lifetime high of 119, the scrip has seen a decent correction and finding support at around 85-90. Accumulation could be considered for a possible price target of 125 in the coming weeks.
Andhra Sugar (136)-Post a split the scrip has seen a long consolidation phase in the past few months. Ideal support levels are at 115-125.Accumulation could be considered for a possible target of 170 in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam