WEEKLY TRENDSETTER (JAN 19,2024)
| 2024 | JAN 5 | JAN 12 | Ch % |
| NIFTY | 21711 | 21894 | +0.84 |
| BANK NIFTY | 48159 | 47709 | -0.93 |
| USD/INR | 83.16 | 82.92 | -0.29 |
MARKET REVIEW-The week looked heading for a subdued close. However, IT results totally changed sentiments as value buying in the heavyweights powered the index to an all -time high close. Banking continued to be sluggish though the PSU pack showed decent gains.
INTERESTING CUES
NARAYANA HRUDAYALAYA GETS INSURANCE NOD
The company which has a strong presence in the hospital sector got the nod to set up a medical insurance company which is interlinked with the health sector. The founder Mr Devi Shetty was forthright in his views that though the businesses have conflict of interest, he aims to bring about a genuine change in the operation of the sector through his chain of hospitals. It will be interesting to see how the business takes shape as it is the second instance of a hospital chain entering the health insurance sector after Apollo Hospitals. However, after a few years of operation the medical insurance business was sold out to HDFC Ergo.
LITHIUM PRICES DOWN 80% IN THE LAST ONE YEAR
Even as India is scouting around the world for lithium mining, the prices of the same have seen a sharp correction. The near-term outlook also looks bearish according to trade analysts. The largest lithium miner in Australia reported stock-piling forcing it to cut production. The reason for the sharp fall in demand is because EV sales have not kept pace with expectations. While it rose 60% globally in 2022, it rose by just 30% in 2023.The battery costs were the chief concern of buyers of EV vehicles. The trend is expected to continue for 2 more years and deficit is expected only by 2028.
INDIA MAY EMERGE TOP GLOBAL PRODUCER OF LENTIL(MASUR)
With an expected production of 1.6 million tons, India is expected to surpass Canada and US shortly. However, with consumption on the rise the acreage is likely to go up further. On the other hand, Canada is expected to scale down production. Acreage of wheat also has turned marginally positive which will go a long way in self sufficiency
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index vaulted past 21765 towards close of week aided by some heavyweight performance from the IT sector. Levels of 21500 were successfully defended during the week and thus could act as a near-term bottom even as the index targets 22000 by end of Jan.
BANK NIFTY-The index was again weighed down by HDFC Bank though the PSU pack was in a buoyant mood. The coming week will be interesting as the bank is expected to post results amidst mute expectations. Any positive or negative surprise could have a sharp impact on both indices as the bank has a heavy weightage in both. Any downside should see good support around 46300. On the upside 48500 will be the target above which a sharp breakout could see the index scale past the previous all -time high of 48600.
PICKS FOR THE WEEK
Steel Strips&Wheels (280)
The scrip has been an outperformer in the broader market. After touching a high of 298 it went into a short-term correction mode. However, good buying emerged around 270-75 and the scrip now looks to scale past levels of 298 in the coming weeks. Buying could be considered for a possible target of 325.
Yes Bank (25)-The scrip is coming out of a trough after a collapse in the past few years. Recent price action suggests good buying around levels of 20-22 which should act as a good near-term support. Accumulation could be considered for a possible target of 35 in the coming weeks.
Wishing all readers, a great 2024 and a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam