WEEKLY TRENDSETTER (APRIL 15th,2022)
| 2022 | April 1 | April 8 | Ch % |
| NIFTY | 17670 | 17784 | 0.65 |
| BANK NIFTY | 37148 | 37752 | 1.63 |
| USD/INR | 75.98 | 75.86 | -0.16 |
MARKET REVIEW–The week began with a bang on the back of the merger news of the HDFC twins. However, the euphoria was short-lived and market drifted down with the same scrips witnessing selling pressure. However, the noteworthy point is the strength of the broader market which was in a bull zone of its own.
INTERESTING TIDBITS
Telcos demand steep discount in 5G spectrum pricing
The next few weeks will be crucial for telcos as TRAI makes recommendations on the 5G spectrum pricing. However, if demands of telcos are met the pricing could be 70-75% cheaper compared to what TRAI had initially targeted. However, this will be in sync with global pricing: In the 5G auction conducted in UK last year, the price for one Mhz of 5G spectrum was Rs 42.84 cr which is in sync with demands made by Indian telcos. The telcos also want TRAI to give permission to allow them to sublease the band for satellite operators. Another angle which will be keenly watched is whether private networks will be allowed by TRAI which will actually eat into the potential markets of telcos.
Cotton shortage looms large for textile companies
A pipeline stock of around 8 mn bales is available for textile companies which will last for 3-4 months. Cotton prices have risen sharply from Rs 70000 per candy to Rs 90000 per candy in a few months. While the government had levied import duty on cotton to protect the domestic industry, some companies have stated that the move is affecting makers of domestic bed linen and towels, which are dependent on Egyptian and Australian cotton.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The Nifty’s gap up pushed it to 18110 from where the profit-taking saw the index falling to 17600 before a late recovery. The results season could prove crucial for the index as the last 3 months have seen some significant developments like the Ukrainian crisis, sharp rise in crude prices and now some political upheavals in our neighbouring countries Pakistan and Sri Lanka. Odds are high that the index will be in a band of 17200-17900.
BANK NIFTY-A sharp rise to levels of 38750 was greeted with glee by the bulls as profit taking emerged and the index corrected to 37340.Levels of 37000 should act as a good support and on the upside 38000-38200 could act as resistance in the near term.
SCRIPS TO WATCH OUT
Alembic (85)-After touching a high of 143 in May 21, the scrip has seen a deep correction and is now back to long term support levels of 70-80. A bounce back to levels of 110 is possible in the medium term and thus buying could be considered.
Hindcon Chemicals (73) -The scrip has been in a band of 60-75 for several weeks. Lower levels have seen good accumulation and buying at dips can be considered and the scrip could be expected to scale past 100.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam