WEEKLY TRENDSETTER (April 21st,2023)
| 2023 | APRIL 7 | APRIL 13 | Ch % |
| NIFTY | 17599 | 17828 | 1.3 |
| BANK NIFTY | 41041 | 42132 | 2.66 |
| USD/INR | 81.86 | 81.84 | -0.05 |
MARKET REVIEW–The week turned out to be merry outing for bulls as the market gains participation widened and many mid and small caps started attracting buying at lower levels and pare the losses of the past few months.IT proved to be the drag and TCS and Infy disappointed. Pharma, banking and capital goods were in fine fettle and aided Nifty to close above 17800.
INTERESTING CUES
EXPORTS CONTRACT THE MOST IN 3 YEARS
Outbound shipments contracted 14% y-o-y in March, 2023.However for the year as a whole FY22-23 saw exports grow by 6 % y-o-y. However, some bright spots were there as electronic items grew 69% and drugs and pharma saw a 14.4% surge. As far as imports were concerned China ‘s share in import of electronic goods declined from 48% to 42% whereas fertilizer saw a sharper dip from 22% to 14%. Global headwinds like slowdown in demand, inflationary pressures and geo political tension are cited to be reasons for a negative trend.
Equity MF flows at 12-month high at Rs 20000 cr in March
The SIP route breached Rs 14000 cr mark for the first time as the equity cult seems to be catching on with the Indian households and also co-incided with the bottoming out of the market at around 17000 levels in the near term. A total of 2.2 million SIP accounts were registered in March taking the SIP count to 63.6 mn.SIP accounts stood at 21.1 mn in 2018 and has tripled till now.The retail crowd which used to bear the brunt of market falls is now taking advantage of corrections and this has also largely stemmed the impact of FII outflows.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index managed to close above 17800 for the week on the back of strong performance from banking, pharma and capital goods.IT proved to be the drag as IT majors disappointed. The coming week will open after absorbing the poor results from Infy and the steady results from HDFC Bank. Any correction should see good support around 17600 and on the upside the near-term target is 18000.
BANK NIFTY-The index was trading near 41200 at close of the previous week and just on the verge of a breakout. Last week after a steady 3-day gains, the weekly expiry saw a sharp surge taking the index past 42000 .42000 strike has already seen significant put writing and thus should lend good support. On the upside the index could see a dash up to 42800.
PICKS FOR THE WEEK-
Andhra Sugar (116)-The scrip has been a relative underperformer compared to some of its peers. However, the long-term uptrend remains intact. Levels of 110-115 could be ideal for accumulation for a possible target of 130-35 in the coming weeks.
CONCOR (604)-After touching a high of 829 in Nov 22, the scrip has seen a sharp correction in the following months. However, currently it is trading at historically strong support levels. Buying could be considered for levels of 670 in the coming weeks.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam