WEEKLY TRENDSETTER (DEC 17th,2021)
| 2021 | DEC 10 | DEC 17 | Ch % |
| NIFTY | 17511 | 16985 | -3.0 |
| BANK NIFTY | 37105 | 35618 | -4.01 |
| USD/INR | 75.70 | 76.00 | 0.4 |
MARKET REVIEW–Last week the indications were clear that hedging at 17700-800 Nifty levels would be advisable. However, the market turned from 17650 itself and by close had breached 17000 level as well. The Bank Nifty closed below the 200-dma for the first time this year with selling witnessed in private banks as well as PSU banks.
INTERESTING TIDBITS
Interest rate signals
With strong inflation signals on the horizon the Fed finally bit the bullet and decided to double the taper and also indicated 3 possible rate hikes in 2022.Interestingly Bank of England became the first major central bank to hike interest rates by 15 bps to .25% from .10%.However ,Turkey in an interesting but probably ill timed move decided to cut interest rate which prompted dumping of lira and also triggered a stock market crash .However, it also needs to me noted that deposit rates in Turkey are at 12.50% and after the 1% cut ,the borrowing rate stands at 14 % .Clearly the interest rates are way out of sync with global rates.
Drones slowly making their presence felt
The flying machines were a fancy particularly at weddings where it covered the proceedings and excited invitees found it like an alien from Mars! However, now drones are used for more serious activities like mining, energy, infrastructure and very soon could end up providing door to door delivery. It has proved handy as emergency measures for delivering medicines in remote areas.
2022 to witness marquee IPO s
The four top IPO s to look forward to in 2022 are as follows: –
LIC has a near 50% market share in the life insurance market it has also had a bumper year till Nov,2021 thanks to a booming capital market.
Ola made a remarkable turnaround in FY21 posting profits of Rs 90 cr vs 610 cr loss in the previous year.
Byju has been dominating the education space, interestingly it is also planning market listing in the US besides evaluating listing on Indian bourses in the 2nd half of 2022.
Delhivery is still a loss-making company posting Rs 415 cr loss in FY21 against Rs 268 cr loss in FY20.
MARKET OUTLOOK.
Some technical cues are as follows going by market trends: –
NIFTY– The index has given clear reversal signs with a swift retracement of the previous rise which now threatens to breach the previous low of 16800 which could signal the fall to continue till 16400-500 levels. Caution is advised as the world markets are also ina sell off mode.
BANK NIFTY -The index has been relatively week and an engulfing bearish weekly pattern has been formed and now has closed below the 200-dma for the first time in 2021.The fall could continue and levels of 32600 expected over a period of time.
SCRIPS ON RADAR
PFC (119)-The scrip has breached the 200-dma and any move towards 123-25 could see resumption of selling. The scrip could be expected to touch levels of 106 in the coming days.
Wipro (670)-The scrip saw good buying around levels of 650-660 and after a correction from 740 to 600 is on a pullback mode which could take it back to levels of 710. Buying can be done accordingly at dips.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam