WEEKLY TRENDSETTER (JAN 10,2025)
| 2025 | DEC 27 | JAN 3 | Ch % |
| NIFTY | 23813 | 24004 | 0.80 |
| BANK NIFTY | 51311 | 50988 | -0.63 |
| USD/INR | 85.49 | 85.78 | 0.34 |
MARKET REVIEW-The market closed on a weak note ahead of the New Year. The mood perked up on the advent of the New Year and a smart rally saw all round gains. However, the gains could not be sustained fully and the market closed on a cautious note.
INTERESTING CUES
US FDA recognizes tea as healthy beverage
This could act as a boost to the tea industry as the tea producers could voluntarily label tea products with the healthy claim as it is rich in antioxidants. According to the Indian Tea Association, this is a pivotal moment for the industry as it not only validates the nutritional value of tea but also empowers consumers to make informed choices.
Adanis to exit JV with Wilmar
The exit should enable the group to raise $ 2bn in which it has a 44% stake. The funds will be utilized to turbocharge its investments in the core infrastructure platforms in energy and utility, transport and logistics and other allied businesses. The company had a
made good progress in the FMCG business in the last 2 decades with established brands like Fortune. It has 24 factories across 15 cities. However, the industry has been facing headwinds with dwindling margins, increasing competition and cost inflation.
NIFTY –The index slipped to 23600 on the eve of the New Year. However, some cheer was restored and there was a smart rally which saw the index even going past 24100.The gains were however trimmed towards close and the index just managed to close above 24000.Interestingly, the weekly chart has formed a bullish engulfing pattern which should see bulls hopeful of further gains in the coming week. A close past 24200 would be comforting while support around 23800 should ideally hold.
BANK NIFTY-The index did not keep pace with the rest of the market and infact closed in the negative for the week. Support exists at 50670 which is the 200-dma which has already been tested several times in the past few weeks. Multiple supports between 50000-50600 ideally should hold.
STOCK PICKS
Associated Alcohol and Breweries (1117)-The stock has been witnessing good buying at lower levels and making new highs. It touched levels of 1150 few weeks back and it is again approaching those levels. Buying could be considered at declines for a target price of 1200.
Cupid (79.75) -The stock was a star performer in the last 3 years. It had gone into a consolidation mode after touching a high of 141.Levels of 70-75 should provide decent support. Accumulation could be considered for a possible level of 125-150.
Wishing all readers a very happy 2025 and pray it brings cheer to your families!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam