WEEKLY TRENDSETTER (DEC 22nd,2023)
| 2023 | DEC 8 | DEC 15 | Ch % |
| NIFTY | 20969 | 21456 | 2.32 |
| BANK NIFTY | 47262 | 48143 | 1.86 |
| USD/INR | 83.38 | 83.03 | -0.42 |
MARKET REVIEW-It was another week of action led by the bulls as large caps led from the front and it was also on the back of cheers from the US market where the indications of interest hike reversal in 2024 sent the Dow to an all time high. The next week could largely see consolidation before the final week of the year sets the tone for Jan ,24.
INTERESTING CUES
Sachet concept still driving FMCG sales
Price Point Packs (PPP) continue to drive FMCG sales as per FMCG majors like HUL and Colgate. With 60% of the population still in villages there is a need to address pockets which are price sensitive. The coming quarters are expected to see more efforts to address this segment of population. In urban cities e-commerce contributes 10% of sales which has seen steady increase. In the rural segment, companies are still grappling with slowdown post Covid though indications are that the sector should be back to pre Covid levels as far as margins are concerned. In an economy which is expected to show strong growth, this segment could be a chief beneficiary as consumption pattern improves.
INOX CVA offers interesting prospects
The recent IPO which should be listed next week, is a large manufacturer of cryogenic equipment in the country. It has presence in diverse industries such as industrial gases, liquified natural gas (“LNG”), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction. It is the 3rd largest in the world though in volume terms it is still way behind the first 2 players. The offer is divestment by the promoters to “make the company more visible in the global markets.” The niche business offers immense potential and could be a company to watch in the coming years.
Maersk to launch ethanol-based vessels
The first launch of the 18 vessels is expected in Feb 24. The container vessel built by Hyundai Heavy Industries in South Korea has a nominal capacity of 16000 containers and is equipped with a dual fuel engine enabling operations on methanol as well as bio-diesel and conventional bunker fuel.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index closed at a life time high for the week led by banking heavyweights like HDFC Bank, ICICI Bank, SBI and IT majors. The trend is likely to extend to levels of 22500 and on the downside levels of 21300 should provide decent support.
BANK NIFTY-The index was in fine fettle led by private majors and towards close of week SBI also joined the party as it hit a life time high. With high weightage of private banks in the index, particularly HDFC Bank, the rally could extend past 50000 in the New Year. Levels of 47500 should provide decent support.
PICKS FOR THE WEEK
BPCL (449)-The scrip is on a strong uptrend though it saw a correction last week to levels of 450.Accumulation could be considered and the scrip should scale past 500 in the coming weeks.
Vodafone Idea (14.1)-The stock was in a consolidation phase in the past few weeks after touching 15. However, it looks ready for resumption of the uptrend and levels of 17-18 could be expected in the coming weeks.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam