WEEKLY TRENDSETTER (DEC 20,2024)
| 2024 | DEC 6 | DEC 13 | Ch % |
| NIFTY | 24678 | 24768 | +0.36 |
| BANK NIFTY | 53509 | 53583 | +0.14 |
| USD/INR | 84.68 | 84.80 | +0.14 |
MARKET REVIEW-The market looked heading for a negative close for the week. However, the weekly expiry in BSE had a surprise in store. It played out very similar to the Nifty expiry in the previous week with bouts of volatility which would have unnerved bulls and bears alike. Though closing of the indices was flat, there was enough drama which would be topic for discussion over the weekend among the trading fraternity.
INTERESTING CUES
Gulf Oil looks beyond lubricants
The company has been steadily making progress in an industry largely dominated by Castrol and Shell. Though the lubricant industry has been growing at about 3-4%, the company is growing at double digit. It leads in certain categories like CV segment,2-wheelers, factory fills and industrial segment. Despite the advent of EV s, the company is confidant that for at least the next 25-30 years ICE (internal combustion engines) will remain dominant. The company has also been proactive in the EV space having invested in batteries nearly a decade ago. It is the 3rd largest in the 2-wheeler segment, distributed through 12500 touch points. It also has a range of EV fluids and coolants and is also looking at battery charging solutions. The company has been growing at double the industry rate in the industrial segment and expects significant volume growth in the coming years.
Morepen Laboratories on high growth
The company manufactures glucometers and blood pressure monitoring machines is looking at a 20% CAGR over next few years and targets revenue of Rs 5000 cr by 2030.It is banking on new products such as medical devices, OTC medicines and wellness offerings(nutraceuticals)to drive growth. It has plans to increase its OTC segment revenue from Rs 200 cr to Rs 1500 cr by 2030.The company raised Rs 200 cr through QIP and nearly 60% will be towards expansion of medical devices segment.
NIFTY –The index moved to perfection within the 24300-800 range for the week. Infact the entire range was played out on the last day of the week. Odds are high that 25000 will be attempted during the coming week while the support level should ideally emerge around 24400-500.
BANK NIFTY-The index has been steadily rising but seems to have decided to touch a new high near the New Year as it has been slipping every time closer to 54000.Heavyweights HDFC Bank and ICICI Bank have been showing encouraging signs and have been leading the uptrend. The coming week could see an attempt to close above 54000 which then could set the stage for the final flurry to 55000 in the last week.
STOCK PICKS
GAIL (205)-The stock has seen a decent correction from 245 to 180 and has begun the Dec series on a positive note. Levels of 200 should ideally hold. Buying at dips could be considered for a possible target of 215 in the coming days.
Lyka Labs (161)-The stock has been consolidating in a narrow range of 140-60 with a positive bias. Accumulation could be considered for a possible target of 185-90 in the coming weeks.
Wishing all readers great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam