WEEKLY TRENDSETTER (JULY 19,2024)
| 2024 | JULY 5 | JULY 12 | Ch % | |
| NIFTY | 24324 | 24502 | +0.73 | |
| BANK NIFTY | 52660 | 52278 | -0.73 | |
| USD/INR | 83.50 | 83.52 | +0.02 | |
MARKET REVIEW-The week was difficult to navigate as sharp profit-taking was seen in the broader market. The IT pack came to rescue towards end of week which boosted the sentiments and also a positive thrust to the index outweighing the negative impact of the sluggish banking sector. With the Union Budget round the corner the market is bracing up for some bold announcements after NDA 3rd successive term in the Centre.
INTERESTING CUES
Cyient to set up subsidiary to deliver semi-conductor design services
The subsidiary will acquire the integrated semiconductor technology of Cyient and focus on designing and selling specialized chips. The company provides engineering solutions for a digital and autonomous future. It claims to have over 600 IPs in a diverse range of functions and technology nodes. Some of its notable clients include Airbus, Deutsche Aircraft, and SkyDive. The development comes at a time when the country’s semiconductor space is buzzing with activities. Amidst the Centre’s focus on promoting semiconductor manufacturing in India, a number of companies have announced plans to enter the space. With its subsidiaries Cyient DLM also in the space the group enjoys a head start which augers well for the long run.
Oil & gas set to get a boost
The ever-rising import of crude oil (3rd largest importer) and LNG (4TH largest importer) has been a cause of concern with stubborn crude prices and a strong dollar. The oil ministry is keen on bringing this under control by offering incentives to tap the huge domestic resources. Only 10% of the sedimentary basins are under exploration and post awarding blocks for exploration, it is expected to rise to 16% by 2026. The Govt is also making investment of Rs 7500 cr in acquisition of seismic data. Both OMCs and oil producing companies are buzzing in action on the back of these moves.
Torrent Gas planning an IPO
The company has presence in city distribution business since 2018 and currently has licences in 17 geographical areas. It has plans to expand in Tamil Nadu and half its planned investment of Rs 10000 cr will go towards laying infrastructure for gas distribution.
NIFTY – The index saw a strong surge past 24500 towards close of week on the back of the IT pack. With global cues also supportive the index could see a surge upto 24700 in the coming week.
BANK NIFTY-The indexhas managed to close above 52000 though the momentum looks like slackening. On the upside 53500 remains a stubborn hurdle which 52000 should ideally hold.
PICKS FOR THE WEEK
Indus Tower (392)-The stock has been on a strong uptrend and has been consolidating above 370-80. While in the near term it looks stretched, buying could be considered at declines for a possible target of 430.
MGL-(1696)-After a strong breakout past 1600 the stock has turned sideways. Ideal levels for entry would be 1650.The stock should regain levels of 1750.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam