WEEKLY TRENDSETTER (DEC 13,2024)
| 2024 | NOV 29 | DEC 6 | Ch % |
| NIFTY | 24131 | 24678 | +2.27 |
| BANK NIFTY | 52055 | 53509 | +2.79 |
| USD/INR | 84.58 | 84.68 | +0.25 |
MARKET REVIEW-The week turned out to be better than expected. This was largely due to FII mood changing for the better. Some relaxation in circuit filters also brought cheer to traders and several stocks saw sharp spikes boosting trading sentiments. The indices could go into a range for the next 2 weeks before a final push towards 25000 and above for the New Year.
INTERESTING CUES
Copper ‘s role in India’s solar, wind energy plans
The stiff target set by India for greening its energy mix with 500 MW of non-fossil fuel-based electricity by 2030 and possibly 1 TW by 2035 will sharply increase demand for copper. As per global data a 3MW wind turbine contains upto 4.7 tons of copper with 53% going into wiring and cabling,24% in turbine generation,19% in turbine transformers and 4% in regular transformers. In solar power systems, approx. 5.5 tons of copper per MW is used. Demand for refined copper is expected to grow at a robust rate of 11% annually. Infrastructure development also will add to the demand in India.
Hero Motors plans to scale up EV business
A boost is planned for the EV two wheelers segment which is aimed towards markets like UK, France, Spain and Italy. The VIDA range of electric scooters is currently priced between Rs 1-1.50 lacs. The presence of a physical sales and services infrastructure on the ground helps in gaining customer trust. The company currently sells VIDA range in 230 cities and towns with over 400 sales touchpoints. The company is betting big on rural demand picking up and increase in MSP prices.
NIFTY –The index saw the 200 -dma holding on and has dashed quickly to 24850 before some cooling off. The next leg of the rally should see levels of 25200.On the downside 24250-300 should ideally hold.
BANK NIFTY-The index has been a relative out -performer. Signs were encouraging for it to atleast touch 54000 towards close of week. However, bulls went into a profit-taking mode and finally the index closed at 53500.Lower levels of around 52700-53000 should provide support and a breakout past the all time high of 54500 looks likely before year end.
STOCK PICKS
Axis Bank (1186)-The stock has been consolidating in the 1100-1200 range for the past few weeks. The coming week could see the scrip breaking past 1200 which should see the stock touching 1300 in the next few weeks.
Graphite India (558)-The scrip has seen a strong comeback on volumes from levels of 450 to 600.Profit taking has seen it slip back. However, levels of 530-550 should provide good support. Levels of 675 could be seen in the coming weeks.
Wishing all readers great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam