WEEKLY TRENDSETTER (June 16th ,2023)
| 2023 | June 2 | June 9 | Ch % |
| NIFTY | 18534 | 18563 | +0.18 |
| BANK NIFTY | 43938 | 43989 | +0.12 |
| USD/INR | 82.41 | 82.47 | +0.07 |
MARKET REVIEW–The week began on a steady note.However,the weekly expiry day triggered strong profit-taking and the indices closed flat for the week on Friday.The broader market has seen pockets of strength .
BACK TO RESULTS (March qtr.)
The March quarter results are almost over. The small and mid-cap segments are the ones where some interesting results could be looked at. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against March,22 quarter.
| Company | Revenue | Net profit |
| Schneider Infra | 410(++21) | 44.8(+999) |
| ITD Cementation | 1631(39) | 44.2(+340) |
| Ugar Sugar | 608(+49) | 65.3(+340) |
| Texmaco Rail | 835(+87) | 15(+258) |
Schneider Infra (243)-The company is a global giant specialized in products and services related to electric business. With the sector now on a high growth phase,the best for the company could have just started as it is geared to take advantage of the opportunities emerging.The quarter saw expansion in margins and profit got boosted as revenue growth was also good.With investor attention shifting to value stocks it has already seen a sharp jump .Levels of 225-230 offer decent support.
ITD Cementation (160)-The company is well poised to be part of the infra growth in India as it has presence in wide area of operations like construction of ports, roads, bridges, airports, mass rapid transportation systems, hydro-electric power, dams,etc.The capital intensive nature of these projects resulted in high interest costs over the years .However,with increase in number of projects and better margins ,the company now looks poised for higher growth in the coming years.Levels of 150 could see buying emerging.
Ugar Sugar (117) –The company has presence in sugar,power,distillery and confectionary.With sugar prices hardening and measures taken by the Central Govt for ethanol manufacture,the industry outlook looks more stable than what it was a few years back.With an EPS of Rs 10 the company looks poised to ride the bright prospects of the industry as a whole.
Texmaco Rail (67)-The company has 6 manufacturing units and caters to manufacture of freight wagons,railway tracks,signalling,electrification,bogies ,industrial castings for earth moving equipment ,hydro electric projects,defence,etc .Thus it was a wide presence catering particularly to the Railway sector which is on a transformation mode .High interest costs are eating into profitability which is still a drag.The coming years could be the best opportunity for the company to realize its true potential.Lower levels have already been attracting investor attention.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index almost touched 18800 before profit-taking pushing the index down below 18600 levels.While support should ideally emerge around 18450-500 levels, caution is advised at higher levels of 18650 and above.
BANK NIFTY-The index saw sharp profit-taking around 44450 levels and closed below 44000 levels.The coming week could see some more cooling off and levels of 43300-400 could be seen.Higher levels of 44200 and above could prove to be resistance levels .
PICKS FOR THE WEEK-
Salzer Electronics-(337)-The stock has been on an accumulation phase and looks poised to cross its intermediate top of 372 in the coming weeks.Levels around 325 offer decent support and buying could be considered for a possible target of 400.
Chennai Petro (360) -After a sharp run up to 402 the stock entered profit taking zone.However levels of 340-50 could again see buying support emerging for a possible target of 380.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .