WEEKLY TRENDSETTER (DEC 8th ,2023
| 2023 | Nov 24 | DEC 1 | Ch % |
| NIFTY | 19795 | 20268 | +2.39 |
| BANK NIFTY | 43769 | 44814 | +2.39 |
| USD/INR | 83.40 | 83.30 | -0.12 |
MARKET REVIEW-The market opened with a cheer after a long weekend and there was no let up by bulls going into monthly expiry. Even the FII s turned bullish as they turned into buying mode. Even the Assembly poll results during the weekend did not deter the bulls and the Nifty closed at an all-time high. The US markets were also roaring with a 800+ gain in the last 2 days of the week.
INTERESTING CUES
REC ZOOMS AS BORROWING LIMIT IS INCREASED
The limit has been increased from Rs 1.2 lac cr to Rs 1.5 lac cr for FY23-24. Disbursement crossed Rs 1 lac cr for the first time ever in the 8-month period of FY23-24 as against Rs 46075 cr in the corresponding previous period. The company plans to increase its renewable energy portfolio from 6% to 30% byFY30.The stock also got a boost in Aug as it became part of the MSCI index. For the Sept quarter the company showed revenue growth of 17%, net profit growth of 38% and EPS of Rs 14.4. It has already reported EPS of 25.5 for the first 6 months of FY23-24. With asset quality improving and steady NIMS the stock has shown a remarkable rally from 111 to 375 this calendar year with Dec still to go!
INDIA LAUNCHES ITS AUCTION OF CRITICAL MINERALS
The minerals are assessed at a value of Rs 45000 cr covering lithium, REE (rare earth elements), nickel, copper, chromium, potash, molybdenum, etc. These are located across 8 states in India. Of this lithium is the highlight as India imports around Rs 24000 cr every year which is only going to go up steadily with increasing use of EV batteries in the coming years. Korean and Japanese mining companies are also likely bidders. Among the listed stocks GMDC and NMDC are in the forefront.
TATA POWER CAPACITY TO CROSS 18GW IN 2 YEARS
The growth is expected to be on the back of impetus on renewable segment. The company’s current capacity is 14381 MW (Thermal -8860 MW Solar-3191 MW). Another 3760MW of renewable energy is under construction. A capex of Rs 60000 cr is planned over the next 4 years out of which 45% will be spent on RE. In the latest acquisition the company has added transmission project in Rajasthan, won bid to acquire Bikaner Neemrana transmission project and Bikaner renewable energy project.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index performed better than expected and closed at an all-time high of 20268.The strong breakout could propel the index past 20600 in the immediate short term
where some caution is advised.
BANK NIFTY-The index was also in a buoyant mood and was marching towards 45000 which could happen early next week. Heavyweights like HDFC Bank were in a buying mode. Axis Bank was leading from the front and closed at an all-time high. The PSU banks also contributed to the gains.
PICKS FOR THE WEEK
NB Ventures (393)-The stock has seen a remarkable rally this year. From a low of 230 it doubled to touch an all time high of 470 before a correction. Levels of 375-80 should provide good support and stock could be heading for 450 and above.
Tata Power– (276)-After touching 298 in 2022 the stock saw a correction to 182 before resuming its uptrend. Accumulation could be considered with a target of 310 in the coming weeks.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam