WEEKLY TRENDSETTER (DEC 6,2024)
| 2024 | NOV 22 | NOV 29 | Ch % |
| NIFTY | 23907 | 24131 | +0.94 |
| BANK NIFTY | 51135 | 52055 | +1.80 |
| USD/INR | 84.47 | 84.58 | +0.13 |
MARKET REVIEW-The euphoric opening for the week was short-lived. The undertone continued to be uncertain. Finally, the index closed in the positive above 24000 much to the relief of bulls. The broader market however looked better and brought some cheer to investors who have seen a good correction in the last couple of months.
INTERESTING CUES
1.Pre-listing lock in on $13.9 bn worth of shares to go in next 2 months
Some of the names are Afcons Infra, Sagility India, Swiggy, NTPC Green, Niva Bupa, Inka Logistics to name a few. These shares are 2-5% of the outstanding shares and will be an acid test to the demand existing at the time of the lock in getting over. Strong listing counters are the ones to be watched out as block deals could lap up the quantities available for sale.
Zee shareholders vote against re-appointment of Punit Goenka
Zee Tele continues to be in limelight with the Subhash Chandra promoted company not getting support from the shareholders. A failed merger with Sony, SEBI s interim order against Goenka has dampened investor sentiment and the share has taken a severe beating in the last 2 years ironically in what has been a super bull market. ZEEL and Sony merger would have created the largest media company in India valued at $10 billion. It was set to expand its presence in India and globally. While Zee has a strong media network in the Indian market, Sony has a strong global presence which will create a unique synergy for the company’s growth.
Their goal was to compete with top streaming players like Netflix and Amazon Prime Video. The merger would have helped to offer content in multiple languages to a wide array of audiences and reduce the cost of streamlining operations. While Sony held a majority stake of 51% of the new company, the Zee Entertainment Enterprises founder held 4%, and other ZEEL shareholders held 45%. However, the unwillingness to let go of the management by the promoters led to the alliance breaking up.
Zomato raises Rs 8500 cr via QIP
On the heels of an IPO in 2021 the company has further mopped up funds which will go towards expanding operations, investing in technology and strategic acquisitions. The QIP placement was done at a price of Rs 252.5 while closing for the week was at 279.The company recently unveiled its ‘District’ app, a one-stop destination for going out, which according to the management is the theme for the next decade. The company disclosed a decline of Rs 1726 cr in its cash reserves during the September quarter, largely due to its Rs 2,014 cr acquisition of Paytm’s entertainment ticketing business.
NIFTY –The index did open for the week with a gap up as expected on the back of a strong show by BJP and its allies in the Maharashtra election. However, it failed to surpass 24350 and even slipped below 24000 during the week. The closing for the week was unconvincing as momentum was clearly lacking. The coming week should ideally see support at around 24000 while a close above 24500 could see some confidence returning to the bulls.
BANK NIFTY-The index was a relative out -performer. It faltered above 52500 and finally closed for the week above 52000.The index has been struggling to hold above 52500 on several occasions now in the recent few weeks. That level continues to hold the key for any strong upside. The coming week also promises to be range bound. The RBI policy on Dec 6 holds key for a decisive move on either side.
STOCK PICKS
HSIL (960) -The stock has been witnessing buying at every dip and has formed an inverted Head and Shoulder pattern on monthly chart. It touched an all-time high of 1088 in Oct 23 before going into a consolidation mode. Buying could be considered for a possible target of 1100 in the coming weeks.
Deepak Fertilizer (1375)-The stock has been on a steady uptrend in the past few weeks and looks poised to surpass its recent all-time high of 1405.Accumulation could be considered for a possible target of 1450 -1500 in the coming weeks.
Wishing all readers great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam