WEEKLY TRENDSETTER (SEPT 17th,2021)
| 2021 | SEPT 10 | SEPT 17 | Ch % |
| NIFTY | 17369 | 17585 | 1.24 |
| BANK NIFTY | 36683 | 37812 | 3.08 |
| USD/INR | 73.53 | 73.48 | -0.07 |
MARKET REVIEW–The markets continued with the momentum and Bank Nifty managed to race past 37700 and post a life time high. While most sectors showed positive returns, metals saw some profit-taking. The market rally in India was against a global market which was largely negative.
DID YOU KNOW
Ola Electric scooter takes market by storm
The last couple of months has been witnessing an interesting trend in the two-wheeler space where a most unlikely entrant has emerged. The last 2 days saw sales of Ola electric scooter is at a whopping Rs 1100 cr which is the highest sales in value terms for a single product in Indian e-commerce history. Interesting trend in Europe and Taiwan is that 90% of the two-wheeler market have become scooters. Two-wheelers are increasingly looked at as a vehicle that everyone in the family can share, men and women, old and young. It is also more convenient and has become better in terms of performance. Bikes could be reduced to the big segment 300-500 cc, mostly for hobbyists. Whether Indian markets will take this trend only time will say.
Housing loan interest rates reduced and domestic appliances sales expected to boom.
SBI, Bank of Baroda and Kotak Mahindra are offering housing loans at record low rates of 6.5-7%. Besides the sale of TVs, washing machines, refrigerators s is expected to boom on pre festive buying and top retailers are even expecting supply to lag behind.
MARKET OUTLOOK.
The Nifty has rallied 10% in the last 6 weeks from levels of 16000 and look overbought. A near term consolidation or correction could be seen as profit-taking could emerge. The index could find good support at levels of around 17250-300.Bank Nifty has seen a breakout past 37000 and any profit taking could see levels of 37200 acting as a good support level.
Some technical cues are as follows going by market trends
Scrips to watch out
The mid-cap and small-cap rally saw a revival in the last couple of weeks and the June quarter results offered some cues. Couple of technical set-ups are discussed with potential trades for the coming week: –
JSW Steel (682)-The stock has seen good support at levels of 670-680 in the past. However, the level is becoming vulnerable and could yield ground. The stock could be sold around 690-95 for a possible target of 625 in the coming weeks.
Idea Cellular11)-The scrip has been an underperformer in the last few months. However, levels of 8-10 could act as a strong long-term support going be short covering seen and also delivery-based buying. Accordingly buying could be considered for levels of 18-20 in the coming weeks.
There is still a lingering fear that the 3rd wave of Covid could be round the corner. Optimism is however prevalent going by crowded tourist spots. Stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam