WEEKLY TRENDSETTER (DEC 15th ,2023)
| 2023 | DEC 1 | DEC 8 | Ch % |
| NIFTY | 20268 | 20969 | +3.46 |
| BANK NIFTY | 44814 | 47262 | +5.46 |
| USD/INR | 83.30 | 83.38 | +0.10 |
MARKET REVIEW-There was no letting up by bulls as the market opened with 250 points gap up for the week on the back of better that expected performance by BJP in the Assembly elections. While bouts of profit-taking were seen on intraday basis, the market managed to wipe out all losses and close near the high on all days. The large caps were more bullishly inclined going into weekend while the mid cap and small cap stocks saw some bouts of profit-taking.
INTERESTING CUES
ETHANOL FROM SUGARCANE BANNED
A notification from the Govt sent sugar stocks reeling as it clearly disrupted a road map which the Govt had itself initiated. This was apparently to control the sugar prices and with crude also correcting sharply, the Govt took a hasty decision which could arrest the profitability of sugar companies which had set up huge capacities to cater to OMC. While the sugar lobby has made a representation to the Govt to have a re-look at the decision, it has certainly dented the confidence of sugar companies which were just breathing at ease as ethanol provided the right hedge for any sluggishness in sugar prices. However, any sharp correction could provide a good opportunity to enter sugar stocks which were anyway overdue for a correction.
ORCHID PHARMA MERGES WITH DHANUKA LAB
The company recently came out with a QIP for Rs 400 cr to set up capacities. It manufactures and exports APIs and finished dosage forms and 68% of its turnover comes from 3 products -Cefixime, Cefuroxime and Cefriaxone.The merger news saw the stock surging and long-term outlook looks bright.
DAP PRICES ZOOM GLOBALLY
International price has risen from $440/ton in July,22 to $590/ton in Aug 23 and the local producers are clamouring for enhanced subsidy to maintain price parity at domestic level. The price has mirrored the movement of phosphoric acid and ammonia which have also seen hardening of prices during the same period.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index zoomed past 21000 before settling down just below. With heavyweight stocks in momentum, odds are high that the index could see a move upto 21400-500 early next week. In the very short term, it looks stretched but with high momentum, it has seen buying at every dip.
BANK NIFTY-The index was in fine fettle led by private majors which shrugged off sluggishness and closed at the highs for the week. With high weightage in the index, the rally could extend past 48000 in the coming week.
PICKS FOR THE WEEK
SBIN (614)-The stock has been an underperformer in the last few months. However, possibility is high that it will break past 630 in the coming days which will signal a fresh uptrend which could take the scrip to 670.
SDML (299)-The stock has been a star performer in 2023 and after touching an all time high of 390 has slipped below 300. However, the scrip looks set to regain some of the lost ground. Buying at dips could be considered for a possible target of 350 in the next few weeks.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam