WEEKLY TRENDSETTER (Oct 14th,2022)
| 2022 | Sep 30 | Oct 7 | Ch % |
| NIFTY | 17094 | 17315 | 1.29 |
| BANK NIFTY | 38632 | 39178 | 2.21 |
| USD/INR | 81.46 | 82.30 | 1.03 |
MARKET REVIEW–The early part of the week saw a dramatic rise largely on the back of US markets. However, the momentum faltered towards close of week mirroring US markets. With such high volatility overnight positions became hazardous. However, the indices closed in the green for the week to give hopes alive for the bulls.
INTERESTING CUES
Dmat accounts soar to 102 million
The retail participation in the market got a boost with the market revival in June this year.Aug and Sept saw addition of 4.31 million new dmat accounts. This is despite high volatility in the markets due to US rate hikes, persistent inflation pressure, high crude prices and geo political tension which does not seem to abate. This retail participation has been largely responsible for absorbing FII selling in the last 3-4 months and the indices not losing as much ground as the Asian peers and other global indices.
OPEC agrees to cut output
This cut of 2 million bpd which is the largest since the pandemic could ensure that the correction in crude prices is short lived. With gas prices soaring on the back of Russia’s cutting off supplies to Europe, US response remains to be seen to ensure oil supplies are maintained to keep away an energy crisis in winter.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-For October the previous support of 17500 should provide the maximum resistance. The banking counters should again provide support to the index with IT and metals likely to be a drag. Pharma and consumer goods could provide fillip to the index. On the lower side,16800 will remain a critical support zone.
BANK NIFTY-The level of 40000 should act as a resistance level for the month of Oct. Any downside should find support at around 38000 levels.
SCRIPS TO WATCH OUT
Mahindra Holidays– (287)-The scrip has been a silent out-performer in the last few months. It even touched a 52-week high of 313 in Sept. With steady buying emerging at lower levels, the scrip looks poised for a steady uptrend. Levels of 350 could be seen in the coming months. Accordingly buying could be considered.
Himachal Futuristic (79.40)-The scrip has seen very strong resistance, buying also has been strong around 60-65 levels. Accumulation can be considered at declines. The scrip could show a strong move to 100 in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam