WEEKLY TRENDSETTER (JULY 12,2024)
| 2024 | JUNE 28 | JULY 5 | Ch % | |
| NIFTY | 24010 | 24324 | 1.31 | |
| BANK NIFTY | 52342 | 52660 | 0.61 | |
| USD/INR | 83.41 | 83.50 | 0.11 | |
MARKET REVIEW-The week saw some decent sector rotation as pharma, IT and the PSU pack were in stellar form even as banking sulked after some sluggish quarterly data from HDFC Bank. The market will now be betting on the June quarterly results which should start from next week.
INTERESTING CUES
MM FORGING ARM TO MANUFACTURE HYBRID MOTORS
The company (Abhinava Rizel Ltd) which is a subsidiary of MM Forging is going on a significant path as it is set to begin manufacture of hybrid motors (an import substitute) for EV s soon. The EV passenger vehicle population is expected to increase from 1.23 lac to 7 lac to 10 lac by 2030 and thus a significant market is opening up.
PROMOTERS OFFLOADING SHARES
One of the trickledown effects of a booming secondary market is the promoters encashing on rich valuations. In 2023 the selling was estimated at $12.3 bn and in the 1st half of 2024 it has already crossed $10.5 bn involving promoters of 37 companies on NSE500.Some of the noteworthy ones are Mankind Pharma to meet minimum public stake norms, Vedanta to reduce debt, Cipla and M&M for personal considerations and by Bharti Airtel and Indus Tower for strategic realignment.
IOC ON EXPANSION SPREE
The PSU giant is expected to incur capex of Rs 34000 cr in FY23-24 and around Rs 37500 cr in FY25.While refining capacity is expected to touch 88 mn tons by end FY26 from 70 mn currently, petrochemical capacity is expected to reach 7 mn tons by FY27 from 4.4 mn tons currently. Lot hinges on stable crude and rupee which are the 2 most critical factors that could disturb the applecart for OMC s.
NIFTY – The index was largely steady and buying interest was strong at lower levels. Sectoral rotation has also ensured that the Nifty broadly maintains a positive trend as seen last week with IT and pharma shoring up the index. The index has now closed above 24000 for 2 weeks in a row. While some profit taking cannot be ruled out the support is likely to hold for the week as the market makes an attempt to cross 24500.
BANK NIFTY-The indexfaltered towards close of week as HDFC Bank gave up all its recent gains to close at the low point which does not auger well for the coming week. Other private banks and the PSU banks did perk up in action to negate the fall but the momentum of the index has faltered for the near term and levels of 53000 and above could see selling pressure. Levels of 52000 should ideally hold.
PICKS FOR THE WEEK
Zydus Lifesciences (1162)-The stock has been on a momentum and on the verge of breaching the all-time life level. Ideal levels for entry are 1140-50. Accumulation is advised for a possible target of 1300 in a few weeks.
GMDC– (401)-One of the stellar performers of 2023, the stock has corrected from the peak of 505 in the last few months. However, it has been consolidating in a narrow range of 370-400 for the past few months. Buying could be considered for possible a possible target of 450 in the coming weeks.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam