WEEKLY TRENDSETTER (Oct 21ST,2022)
| 2022 | Oct 7 | Oct 14 | Ch % |
| NIFTY | 17315 | 17186 | -0.74 |
| BANK NIFTY | 39178 | 39305 | 0.32 |
| USD/INR | 82.30 | 82.21 | -0.11 |
MARKET REVIEW–The week began on the back foot and with volatility unnerving bulls and bears alike, the closing again was unconvincing. The IT results of the biggies TCS and INFY were mixed. With a correction already seen in the past few months, some stability was seen in the counters. Wipro however saw a sell off. Banking started on an encouraging note with superb results from Federal Bank .The weekend will see results from HDFC Bank which could set the tone for the banking pack.
INTERESTING CUES
Russia ready to supply gas to Europe-This could come as a relief to the European countries which were going into winter with apprehensions of possible gas shortage. However, these fears were set to rest by Putin. However, interestingly due to the recent disruptions from Russia Europe was able to secure alternative supplies which covers almost 90% of its requirements. It will be interesting to see whether this has some effect on ballooning gas prices which have primarily contributed to the steep inflation.
Mobile Sept exports from India crosses $1 bn in value-Thanks to the PLI scheme of the Govt of India, this segment has got a huge boost. Infact in the April-Sept 2022 period exports have more than doubled to $4.2 bn from $1.7 bn in the corresponding previous period. The PLI scheme was intended to lure manufacturers from China and Vietnam. The main drivers of the exports are Apple contract manufacturers Foxconn, Wistron and Pegatron, along with Samsung which are leading participants in the Rs 41000 cr PLI programme. The export target is pegged at $60 bn by 2025-26.Vietnam ‘s exports of mobile phones stands at $45 bn ,China ‘s exports stands at $140 bn.The global exports market is pegged at around $300 bn.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index failed to sustain above 17300 on 2 ocassions during the week and on the downside support emerged around 16950.The trend was largely mixed as IT and metals weighed down on the index. While 17000 has acted as a support,it has proved unconvincing. Thus the index should largely be in a band of 17000-17400.
BANK NIFTY-The level of 40000 should act as a resistance level for the month of Oct. Any downside should find support at around 38000 levels.
SCRIPS TO WATCH OUT
ITD Cementation (119)-The scrip is on a comeback trail after a deep correction over the years. It has seen a breakout past 100 and consolidating in a band of 110-120 .Accumulation could be considered for a possible price of 150 in the coming weeks.
ArchidPly Inds(80)-The stock has been a steady performer though a correction over the past few weeks has seen it fall to support levels of 75-80.Buying can be considered and the scrip could be expected to scale past its previous high of 105 in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam