WEEKLY TRENDSETTER (SEPT 10th,2021)
| 2021 | SEPT 3 | SEPT 10 | Ch % |
| NIFTY | 17323 | 17369 | 0.27 |
| BANK NIFTY | 36761 | 36683 | -0.21 |
| USD/INR | 73.04 | 73.53 | 0.67 |
MARKET REVIEW –After logging super gains in the 1st week of Sept the market went into a consolidation mode and closed with marginal gains. The Bank Nifty fell shy of the 37000 marks though recovery was seen in most private sector banks.
DID YOU KNOW
DOMESTIC CAR MANUFACTURERS IN NO HURRY TO GET INTO EV VEHICLES
Domestic car manufacturers notably Maruti,M&M,Hyundai and Indian subsidiaries of Volkswagon,Renault and Nissan are yet to be convinced that the time is right to get into EV vehicles.Maruti was vocal right from the beginning that their focus will be on CNG and hybrid variants.The main deterrants for an EV vehicle are the underdeveloped charging infrastructure and high prices for lithium -ion batteries.However,Tata Motor has been a sole exception as it launched 2 e-Tigor models priced at Rs 11.99 lacs and 12.99 lacs respectively.
While it is early to say if it is commercially a success ,its definitely price competitive as the others are clearly in the “elite “category with price range upward of Rs 1cr .
Going by current scenario, the EV infrastructure will be the key to even make the domestic manufacturers think of getting into EV launches. Interestingly after 25 years of presence, Ford is winding up operations in India reportedly due to over $2 billion dollars losses over the last decade.
TECHNICAL TEXTILES GET A Rs 10863 cr PLI BOOST
This segment is expected to encourage Indian textile producers to expand from cotton to synthetic or man-made fibres. They consist of nylon, polyster, acrylic, rayon and polyolefin. Interestingly the application of these is not only for apparels but also used in agriculture, roads, railway tracks, military purposes and disaster management. The incentive is given going by changing global demand. Covid brought a new application into use i.e., PPE kits which may be here for sometime. Interestingly these are manufactured by the resurrected Alok Industries which is now under the Reliance fold, Gokaldas Exports, Aditya Birla among the listed ones. Century Enka, Garware Technical are the others which are already into technical fibre production and this boost could be a further boost to their performance.
MARKET OUTLOOK.
1.After a long weekend market will respond to global markets which were mixed. While US markets saw losses, other Asian and European markets fared better. Levels of 17200-250 on the Nifty could provide support in the immediate short-term. The dollar’s losing streak was arrested during the week. While metals, IT, cement have seen buying at lower levels, auto seems to be a vulnerable space as offtake looks sluggish and the coming festival season will be key to revival of demand.
Some technical cues are as follows going by market trends
Scrips to watch out
The mid-cap and small-cap rally saw a revival in the last couple of weeks and the June quarter results offered some cues. Couple of technical set-ups are discussed with potential trades for the coming week: –
Grasim (1598)-The stock has seen a broad consolidation in the 1500-1600 range and now looks poised to break past the upper band. The stock’s move past 1600 could take it upto levels of 1750-1800.Accumulation in the band of 1575-1600 is advised.
Zensar Tech (468)-The scrip has seen a stellar run from 255 to 465 in a span of just 4 months. Another short term moves towards 500 could be seen going by last week’s price movement. Buying in the 450-470 range could be considered.
There is still a lingering fear that the 3rd wave of Covid could be round the corner. Optimism is however prevalent going by crowded tourist spots. Stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam