WEEKLY TRENDSETTER (MARCH 31st,2023)
| 2023 | Mar 17 | Mar 24 | Ch % |
| NIFTY | 17100 | 16945 | -0.91 |
| BANK NIFTY | 39598 | 39395 | -0.51 |
| USD/INR | 82.50 | 82.42 | -0.10 |
MARKET REVIEW–The market exhibited bouts of volatility on all days but the pressure at higher levels was very much evident. The closing below 17000 on the Nifty now opens up possible breach of 16800 while Bank Nifty continues to erase all promising moves and potentially could head for 38500.
INTERESTING CUES
JSPL to manufacture fire-resistant steel structures
This premium product is expected to target segments like refineries, bridges, metro projects, industrial structures, steel, power plants, hospitals, commercial and residential buildings. These structures are designed to withstand temperatures up to 600 degrees Celsius for 3 hours.
Patanjali Foods
The company could be categorised under FMCG considering the array of products it offers. In the 2018-22 period its revenue has more than doubled from Rs 11994 cr to Rs 24205 cr .It has also bounced back into the black with net profits of Rs 806 cr in 2022 which translates into an EPS of Rs 27.For FY22-23 it looks heading for topline of 30000-32000 cr .EPS could be around 30-32 .For a category which is witnessing such severe competition with likes of HUL,P&G,Tata Consumer, etc showing sluggish growth, the performance of this newly re-christened company is highly impressive and could command higher valuation in the coming years. From a high of Rs 1495 in Sept 22 it has declined to 900.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index closed below 17000 for the week and downside hints at levels of 16500 in the coming weeks.16800 holds good support in the near term in March.
BANK NIFTY-The index which was expected to lead the revival now looks vulnerable as financials saw a sell off which could continue next week. The recent low of 38613 is likely to be revisited and downside levels of 38000 cannot be ruled out.
PICKS FOR THE WEEK-
Tata Steel (102)-After holding up above 100 for several weeks the stock looks set to breach the 100 level. The selling pressure could see the scrip cracking below 95 in the coming weeks for possible levels of 90.
Canbank (274)-The scrip bounced from levels of 274 and topped out at 288.Last week it slipped below 273 again and now looks heading towards its 200-dma of 266.Odds are high that the scrip could slip to levels of 255 in the coming days.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam