WEEKLY TRENDSETTER (OCT 6TH ,2023
| 2023 | Sep 22 | Sep 29 | Ch % |
| NIFTY | 19674 | 19638 | -0.18 |
| BANK NIFTY | 44612 | 44584 | -0.07 |
| USD/INR | 83.1 | 83.1 | -0.06 |
MARKET REVIEW–The market was largely influenced by global markets with the US market looking increasingly vulnerable due to a decision paralysis on the funding issue which could result in a Govt shutdown. The stalement continues going into weekend.
Interesting cues
Technical textiles exports set to set for strong growth
Among manmade fibres, technical fibres make up 30% of total exports. Sportswear, fire retardant, geo-textiles, construction, agro-tech, industrial tech, home furnishings all use technical textiles with Germany accounting for 60% of technical textiles pie. In the global markets man -made fibres (MMF) accounts for 70% of total textile demand.MMF can be recycled and used productively as seen in manufacture of jacket from waste plastic bottles which is worn by PM Modi. The industry association is confident of increasing exports even without any Govt support like a PLI scheme which has been used successfully in several sectors.
China picks cheap Indian iron ore
A hefty export tax on iron ore was imposed last year in the wake of high steel prices.This has however been removed which has resulted in Indian iron ore becoming cheaper and higher exports which has more than doubled in the first 8 months of 2023. The trend is expected to continue for the rest of the year. While the ore is being offered at $70 a ton FOB, the same is trading at $115 a ton on Singapore exchange.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index did not lose much ground despite a sustained fall in US markets and FII selling in domestic markets. For a brief period, it broke below the critical 19550 support but clawed back to close above 19600 for the week. The coming week will be critical as it opens after an extended weekend and the development on the US front will be very critical to set the tone for next week. A breach of 19550 on the downside could open levels of 19200 and on the higher side 19700 could be the decisive level to be breached.
BANK NIFTY-The index managed to sustain above 44000 for the week. Largely dependent on the mood of HDFC Bank, there was some respite as the scrip managed to bounce back from 1500.On the downside 43800 is very critical and on the upside 45200 and above could be a near term hurdle.
PICKS FOR THE WEEK-
NMDC (148)-The stock has shown a strong revival and taken good support at around 140-142. The scrip could be heading for levels of 160-65 in the coming weeks
BHEL (131) -The scrip has seen a sharp correction from 145 to 124 and again ready to resume its uptrend. It was also recommended earlier at 145 in this column and with the long-term trend still intact, buying could be considered for a possible target of 150.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam