WEEKLY TRENDSETTER (DEC 23rd ,2022)
| 2022 | DEC 9 | DEC 16 | Ch % |
| NIFTY | 18496 | 18269 | -1.23 |
| BANK NIFTY | 43633 | 43219 | -0.95 |
| USD/INR | 82.31 | 82.77 | 0.56 |
MARKET REVIEW–The underperformance from 3 major sectors -IT, pharma and auto continued for the week as well. The Bank Nifty which was holding up the market also showed sharp profit-taking on the weekly expiry day and now is off nearly 1000 points from its all-time high of 44152 registered in the mid-week.
INTERESTING CUES
Deepak Fertilizer to demerge its mining chemical and fertilizer business
Both the above businesses have evolved from commodity to speciality over the years and individually offer value proposition to shareholders and thus the demerger is expected to unlock value for shareholders.
Delhivery part of FTSE All cap index
The company provides full range of logistic services and went public in May 2022 at a premium of Rs 487 .However,the company has been posting losses over the years and even in the current FY both quarters have seen huge losses.Further with unlocking of pre-IPO shares the selling in the secondary market has seen the share sink to a low of 350.The inclusion in FTSE could attract inflow of $8 mn.It remains to be seen how much respite this will offer from the downside.
Murdeshwar Ceramics to issue warrants to promoters
The stock has been trading on Indian bourses for more than 2 decades.However,it has not been able to match up to its more eminent peers in the space like Kajaria,Somany,etc.Last week the Board issued 28.50 lac warrants convertible into shares at a price of Rs 47.The stock closed at 41 at end of last week.
Hindustan Foods buys Reckitt’s unit
The company is emerging as a front -runner in contract manufacturing and already catering to likes of Rin, Surf Excel, Hush Puppies, Knorr, Dettol among several others. Last week it made the above acquisition at a consideration of Rs 156 cr aimed at expanding its healthcare and wellness business. The company has been delivering decent results over the years and is trading at an all-time high.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index is slowly losing ground and approaching the support levels of 18100-200.With banking also going into a profit-making mode the index now looks like the recent high of 18887 could well be the top for 2022.
BANK NIFTY-The index finally saw some profit taking after a sustained 9 week run up which saw the index post a life time high of 44152.However, by close of week it looked more likely to attract selling around 43500-43800 in the coming week and on the downside 42600 could be seen.
SCRIPS TO WATCH OUT
Foods & Inns (127.60)-The stock has been a star performer of 2022 even when mid-cap and small cap stocks went into a correction. After touching a high of 145 it cooled off and levels of 115-120 should offer good support. Buying could be considered at dips for possible target of 150 in the coming weeks.
India Gelatine(247)-The stock has been on a vertical ascent over the past few weeks. Though in the near term it looks stretched, any correction to around 225-230 could be decent levels to accumulate. Levels of 300 could be seen in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam