WEEKLY TRENDSETTER (MARCH 29,2024)
| 2024 | MAR 15 | MAR 22 | Ch % |
| NIFTY | 22023 | 22180 | 0.71 |
| BANK NIFTY | 46594 | 46863 | 0.58 |
| USD/INR | 82.89 | 83.66 | 0.93 |
MARKET REVIEW-The week began on the backfoot as the market was caught in a vortex of negative news like SEBIs diktat to the mutual funds to do a stress test for the small and mid-caps, Supreme Court’s order to disclose the list of contributors towards electoral bonds and the RBI s wrap on the NBFC s to tighten gold lending norms. The Nifty came down to breach 22000 while the Bank Nifty breached 46000.However, both the indices bounced back to close for the week with gains. The highlight of the week was a sharp spike in dollar which closed at an all-time high signalling that elections are near.
INTERESTING CUES
Ethanol blending offtake of OMC s to increase
Despite a correction in the crude, one heartening feature of the Govt is that there is no let up on the ethanol blending programme. Some curbs were imposed on ethanol derived from sugar recently. However, long term offtake tenders have been floated by OMC s for upcoming ethanol plants coming up in Tamil Nadu, AP, Kerala, Telangana, Gujarat, Rajasthan, Goa, Odissa, J&K and Ladakh. Collectively 335 cr litres will be procured. As per recent stats there has been a shortfall in ethanol blending which is likely to fall to 10% as against 12% in the previous year.
Adanis expected to invest Rs 60000 cr in the airport sector
The last 5 years has seen tremendous growth in the sector and this is likely to accelerate in the coming years. Currently the group operates 7 airports and handling 100-110 mn passengers. This is expected to grow 3 times by 2040.Major investments will go into upgrading facilities in existing airports. The group also has plans to invest in city development at 8 airports over 10 years. These would include construction of hotels, multiplexes and other facilities. Funding of all these could also see an IPO in the coming months.
Jio Payments set to disrupt market with entry into soundbox segment
With the entry of the group into the soundbox segment which has been the domain of Pay TM and Phone Pay. It will be a payment and audio verification device which will be offered to retail merchants. Testing has already been done in Tier 2 cities and the company is ready to enter urban areas. As of now Pay TM charges Rs 125 per month and Phone Pay charges Rs 49 per month. Charges per transaction are over and above this which is around Re 1 though not confirmed. It will be interesting to see Jio s approach and with PayTM s plans disrupted with RBI s strict action against Payment Bank, the market looks ripe for the entry of the well-muscled Jio.
NIFTY – The index has repeatedly corrected from higher levels and taken support at around 21800 levels. Going into expiry next week 21800 should again act as a support and 22300 could see selling pressure.
BANK NIFTY-The index did show some bounce last week. However, 47000 is becoming increasingly difficult to sustain. A breach of 46000 has already happened last week and another dip below that could see the index going down to 45300.
PICKS FOR THE WEEK
IPCA Labs (1197)-The stock has been on a steady upmove in the past few weeks and bucking the general trend. Buying around 1150-60 could be done for a possible target of 1280.
Indus Tower (270)-The stock has been on a strong uptrend in the past few weeks and could be accumulated around 255-65 levels for a possible target of 280 in the coming weeks.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam