WEEKLY TRENDSETTER (APRIL 5,2024)
| 2024 | MAR 22 | MAR 28 | Ch % |
| NIFTY | 22180 | 22327 | 0.66 |
| BANK NIFTY | 46863 | 47124 | 0.56 |
| USD/INR | 83.66 | 83.39 | -0.32 |
MARKET REVIEW-The truncated week began on a negative note. However, the last two working days of the year saw some fireworks in the large caps which ensured that the Nifty was just 200 points shy of the all-time high. Auto and metals led from the front and the sector which gave cautious signals were the IT pack which did not participate in the rally.
INTERESTING CUES
Schneider to make investments
The company has been consolidating its presence in India and is reaping the rewards in the past 2 years. It has committed to invest Rs 3200 cr in India and intends to make India the hub for domestic sales as well as exports. Under the plan the company recently inaugurated a Rs 100 cr facility to produce cooling solutions for data centres in Bangalore. This is expected to meet the demand for an exponential growth in cooling solutions for data centres all around the country. The first such facility was set up in Italy followed by India. The scrip has been soaring in the past few days on strong investment demand.
Most IT hardware players set to meet PLI 2 target
The Cabinet’s new subsidy system approved in May 23 had doubled the outlay to Rs 17000 cr with a longer tenure (6 years as opposed to 4 years in the previous scheme) and a more attractive incentive package. This scheme is expected to boost production of laptops, tablets, PCs, servers, etc.
Ramkrishna Forgings in tie up with Titagarh Wagon
The tie up is expected to manufacture forged wheels for Vande Bharat coaches in the next 16-18 months. This manufacturing facility near Chennai is expected to have a capacity to produce 2.5 lac units per annum of which 80000 units will be consumed in India and the rest exported. India has been importing forged wheels for the past 60-70 years. This will be a major landmark in the history of Indian Railways which will enable India to turn into an exporter from a net importer. The Cabinet also plans to export Vande Bharat rakes in 5 years and this is a beginning towards that end.
NIFTY – The index took support at 22000 and managed to close with gains for the week. The momentum looks strong and odds are high that the all -time high of 22526 will be conquered and levels of 22600-700 should be touched. On the downside 22100 should ideally hold which will be comforting for the uptrend to continue.
BANK NIFTY-The index managed to hold on to 46500 and closed above 47000.A good consolidation above 47300 should help the index to clear the next hurdle of 48000.
PICKS FOR THE WEEK
Suzlon Energy (40.5)-The stock was one of the top gainers last year after being a laggard for years. After peaking at 50 the scrip again looks poised to gain momentum after the recent correction. Levels of 35-40 offer decent support and an accumulation zone and the scrip could head towards its peak in the coming weeks.
Gujarat Pipavav (212)-The scrip has seen some huge action in the past few weeks. After touching a low of 169 it reversed sharply to go past 200. Near term the scrip looks stretched. However, on any correction to 200 and below it offers a decent entry level. Buying could be accordingly considered for a possible target of 230 and above in the coming weeks.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam