WEEKLY TRENDSETTER (JAN 24,2025)
| 2025 | JAN 10 | JAN 17 | Ch % |
| NIFTY | 23431 | 23203 | -0.97 |
| BANK NIFTY | 48734 | 48540 | -0.40 |
| USD/INR | 85.97 | 86.61 | 0.74 |
MARKET REVIEW-The market opened weak on the back of negative global cues and then staged a minor recovery before closing again on a negative note. Sentiments mirrored corporate results and also had to bear the brunt of FII selling which also resulted in the weak rupee to dollar. Banking saw negative sentiments towards close of week. With a high weightage on the indices, this could result in sharp movements. On a positive note, the Gaza ceasefire has been approved by the Israeli cabinet which could have a positive impact on the market next week particularly on crude prices which could be expected to cool down.
BACK TO RESULT SEASON
Sept quarter results are trickling in. Let’s explore some of them to get cues of where the stocks could be heading.
Rs in cr, Bracket indicates ch in % against Sept,23 quarter.
| Company | Revenue | Net profit |
| Indian Hotels | 2533(+28) | 614(+40) |
| Aether Inds | 197(+27) | 41(+115) |
| Mahindra EPC | 81(+1) | 6(+200) |
| ICICI Lombard | 6161(+19) | 724(+67) |
Indian Hotels (814)-The hotel industry is one where the consensus of analysts is positive and on that aspect the hotel major delivered another stellar set of numbers. This was largely on the back of increase in new businesses and also a buoyant US portfolio. The air and institutional businesses have also seen consolidation and expected to make useful contribution to revenue in coming quarters. In Q4 and the subsequent quarters of the next financial year, the sector is expected to continue to witness demand buoyancy on account of large-scale regional events, weddings and sustained transient travel. The stock will continue to attract high valuation due to high optimism and likely to witness buying on any correction.
Aether Inds (821)- Aether Industries is a specialty chemical company specialising in manufacturing advanced intermediates and specialty chemicals for diverse industries. The company produces chemicals catering to sectors like pharmaceuticals, agrochemicals, material science, coatings, high-performance photography, additives, and oil and gas. Additionally, it also provides contract research and manufacturing services (CRAMS) and engages in long-term supply agreements with multinational corporations. It also offers contract manufacturing for low-volume, high-value products. With a promoter shareholding of 82% and a favourite of DII s and FII s alike, this robust set of numbers should enthuse investors after a fairly subdued performance in the last 2 years since going public. Valuations are still high and unlikely to see a sustained rise in the short term.
Mahindra EPC (146) The company provides end to end solutions to farmers in modern scientific water management through customized Micro Irrigation Systems, pumps, irrigation automation, community irrigation projects, water conveyance, protected cultivation solutions and value-added products.M&M is the promoter company holding 54% stake. With water resource management likely to be a critical area in the times to come, the company s potential is immense and with a strong promoter backing and with more consistent working, future looks bright.
ICICI Lombard (1948)-The company has an interesting portfolio with presence in insurance products in segments like medical, motor, travel, fire, marine, etc. With such a diversified presence and with each segment offering high potential, the company is an ideal portfolio choice. It posted another strong set of numbers which reflects rising demand for its products. The company also has an investment portfolio which will see a steady rise in the years to come as the rising premium is deployed in attractive avenues. This will provide a good buffer to cushion any sluggish performance in any quarter. At current levels it is still attractively priced and a good long-term bet.
NIFTY –The index has taken some support around 23100 which is also a breakout point of the post-election rally. The weak closing suggests that downside to 23050 is possible. On the upside levels of 23500 remains a stiff resistance area.
BANK NIFTY-The index has been on a steady slide and 48200 looks in danger of getting breached which could see another slide of 1000 points. On the upside 49400 -500 will remain a critical resistance. With heavy weight results of ICICI Bank (Jan 25) and HDFC Bank (Jan 22) expected soon, this could largely influence the movement of the index on either side.
STOCK PICKS
Bhagyanagar Inds (95)-The stock after touching 128 has gone into a correction mode. Accumulation could be considered at lower levels for a possible target of 125 in the coming weeks.
KPR Mills (970)-The stock touched 1192 in Dec and since then has gone into a correction mode. However, levels of 950-1000 offer decent support and accumulation could be considered. The scrip is an ideal portfolio stock for possible levels of 1200 in the medium to long term.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam