WEEKLY TRENDSETTER (SEPT 22nd,2023
| 2023 | Sep 8 | Sep 15 | Ch % |
| NIFTY | 19820 | 20192 | +1.88 |
| BANK NIFTY | 45156 | 46231 | +2.38 |
| USD/INR | 82.93 | 83.14 | +0.25 |
MARKET REVIEW–The week saw a major landmark being achieved with the Nifty conquering the 20000 level and closed well above that. There was a mid-week scare as the mid cap and small cap shares saw some sharp profit-taking. However lower levels attracted buying again and many stocks recovered well.
Interesting cues
Cash volumes in equity segment surges 61% in Aug on NSE
From a level of Rs 51844 cr in Jan, the average daily volumes surged to Rs 81446 cr in Aug in line with booming markets and increasing flow of money from new investors. Dmat accounts surged to 15 cr from 11 cr during the same period. The volumes on the BSE also rose from Rs 3243 cr to Rs 6878 cr during the same period.
Derivatives to cash volumes in India is the highest in the world
The July statistics of the above showed 421 times with next in the list being Deutsche bourse where it is 35.7 times. The others to follow are Israel (16 times), Korea (12 times) and US (8.7 times).
Fertilizer sales surge by 57% in Aug makes Govt uneasy
The sales surge in urea, DAP, and complex fertilizers during Aug when monsoon was deficient by 36% across the country has the Govt worried as this is linked to subsidy and it is suspected that fertilizer is diverted towards non-farm use. DAP has seen the maximum offtake at 14.28 let against an estimated demand of 7.46 lt -up 91% followed by 64% in complex at 17.35 lt against estimated demand of 10.58 lt.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index scaled past 20000 at the beginning of the week itself and closed 1% higher and thus in the near term 20000 could be the intermediate support.
BANK NIFTY-The index outperformed the Nifty during the week on the back of a revival in HDFC Bank and the PSU banks which saw a sharp surge. Though the all-time high of 46369 is just 150 points, this level should ideally be scaled in the coming week and 45800-46000 should act as a decent support.
PICKS FOR THE WEEK-
Huhtamaki PPL (262)-This stock showed a smart rise from 185 to 300 before going on a correction mode and has seen buying interest at around 250.Buying can be considered at dips for a possible target of 300.
Sakthi Sugar (34.5)-The stock has seen good volumes on the upside and looks set to break into a new band above 35. In the near term it looks stretched and thus accumulation could be considered for a possible target of 45-50 in the next few weeks.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam