WEEKLY TRENDSETTER (APRIL 8th,2022)
| 2022 | Mar 25 | April 1 | Ch % |
| NIFTY | 17153 | 17670 | 3.01 |
| BANK NIFTY | 35410 | 37148 | 4.91 |
| USD/INR | 76.20 | 75.98 | -0.29 |
MARKET REVIEW–The week began with some scepticism but sentiments gradually improved and the indices closed with healthy gains. The move on the last day of the week was particularly heartening as global factors were not exactly supportive. This sets the stage for a promising week ahead which also will be the first week of the new financial year.
INTERESTING TIDBITS
BUOYANT GST AND DIRECT TAXES COLLECTIONS
The economy has shown a strong rebound in FY21-22 with tax collections creating records largely due to strict tax compliances and increasing tax payer base.
GST collections soared to 1.42 tn in March which is attributed to the e-way bill generation in the previous month and also due to the Govt’s crackdown approach to detect GST evasion
Direct tax collections touched Rs 13.81 tn in FY22 which was higher by 34% and 23% over FY19 and FY20 respectively. As compared to FY21 it rose by 49% which was largely due to the low base effect caused by the pandemic.
JB CHEMICALS BETS BIG ON LOZENGES, PROBIOTICS
The company is currently a contract manufacturer for multinational companies like J&J ,P&G ,etc. Now it plans to make a presence in the lozenges market which it entered a few months back and enter newer areas like sleep disorder, sexual wellness, motion sickness, immunity apart from the conventional areas like cough, sore throat, etc. The company has been a silent performer in the last few years. While sales jumped from Rs 1344 cr to Rs 2042 cr in the FY17-21 period, net profit more than doubled from Rs 184 cr to Rs 448 cr in the period. The current year has sequentially seen some sluggish performance but could still end up with EPS of Rs 60. The scrip trades at Rs 1560.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The previous week saw strong support emerging at 17000 levels and the index closed strong above 17600.Beaten down sectors like FMCG, pharma is making a comeback which could continue in the weeks to come.
BANK NIFTY-Levels of 36600-36700 were expected to act as a huge resistance but the resistance was smartly breached as the index raced above 37000 with counters like HDFC Bank,
SCRIPS TO WATCH OUT
Bannari Amman Sugar (2626)-A low volume counter with a rising channel which promises to take the scrip past 3200 in the coming weeks. Accumulation could be considered strictly for investment purposes.
Fineotex Chemicals (187) -The scrip saw a modest correction from 180 to 140 and last week it broke past its previous high on good volumes. Buying at dips can be considered and the scrip could be expected to scale past 225.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam