WEEKLY TRENDSETTER (July 7th,2023)
| 2023 | June 23 | June 30 | Ch % |
| NIFTY | 18665 | 19189 | +2.81 |
| BANK NIFTY | 43622 | 44747 | +2.58 |
| USD/INR | 82.04 | 82.06 | 0.02 |
MARKET REVIEW–The market made a quiet beginning for the week. However, once the consolidation was over, it made a smart breakout on the upside and by the close of week the indices had surpassed the previous highs and closed above that! The FII’s were the chief architects of this rally and July begins on an exciting note.
Interesting cues
Chinese notice electronic manufacturing jump in India
The Govt ‘s boost to the electronic manufacturing sector has seen a sharp jump in disbursals from the Govt. Major companies that have received approval for PLI incentives under the mobile phone category include Foxconn and Padget Electronics. With the sector in a take off stage several Chinese manufacturers are looking to form JV s to take advantage of the offtake. Latest figure suggests that Tamil Nadu is leading a surge in exports which has tripled to $5.37 bn in FY23 against the previous year. Other States following TN are UP, Karnataka and Maharashtra.
Lithium reserves found in J&K
The State could soon be providing domestic mining to substitute costly imports which stood at Rs 23171 cr for FY23.The lithium reserves is estimated at 5.9 mn tons. The Govt is also looking to other countries like Argentina ,Chile and Bolivia for exploration of scarce minerals like lithium.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index managed to break past 18889 and closed for the week just below 19200.The new high has been touched after 6 months and going forward 18900-19000 should act as a decent support.This leg of rally could take the market to 19450-500.
BANK NIFTY-The index was a relative underperformer and HDFC Bank had a big role in propelling the index past 44151.However,with the momentum back in action the index could go on to touch the psychological level of 45000.
PICKS FOR THE WEEK-
L&T-(2475)-The stock has broken out of a congestion zone and closed at an all -time high.Near term support exists at 2350.Buying could be considered for a possible target of 2700.
JSW Steel (785)-The stock has been a relative out-performer in an otherwise underperforming metal sector. While near term volatility could be seen accumulation could be considered for a possible target of 850.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam