WEEKLY TRENDSETTER (MARCH 10th,2023)
| 2023 | FEB 24 | Mar 3 | Ch % |
| NIFTY | 17465 | 17594 | 0.74 |
| BANK NIFTY | 39909 | 41251 | 3.36 |
| USD/INR | 82.75 | 82.05 | -0.85 |
MARKET REVIEW–The global recovery towards close of week turned out to be the perfect recipe to unnerve the complacent bears and both the indices managed to show gains and end in the positive for the week. Bank Nifty took the lead and now could test the budget day high of 42015.
INTERESTING CUES
Govt looking at addressing EV raw material challenges
China has a stranglehold on all critical raw materials going into manufacture of EV batteries right from lithium, cobalt, nickel, graphite, manganese besides others. This is largely in the form of refining these minerals which are largely sourced from other countries. The reduction of dependance on China will be challenging. To begin with coal tar is being explored as a resource to convert into graphite. Lithium mining is being explored in Karnataka and other mining of critical resources are being considered.Only time will say how much effective these measures will be.
Airtel to hike tariffs
The company has already blown the bugle as the management states the telecom industry cannot have another “Vodafone-Idea like situation” and plans to increase tariffs in the middle of 2024.Debts have been mounting for the telcos and Airtel ‘s quarterly results already show the strain with huge interest outgoes. While Reliance has been able to manage the situation with other cash rich verticals the capital intensive 5G is affecting margins.VI has been struggling and needs tariff hikes desperately even as it struggles to keep the subscriber exodus under check.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index managed to take support around the 200-dma and going into next week 17800 could be the first hurdle to conquer. The 17300-400 levels will act as a support in the intermediate period.
BANK NIFTY-The recovery was seen in the private and PSU banks and the first challenge for the index will be 42000.On the lower side 41000 could act as an intermediate support.
PICKS FOR THE WEEK-
Kalyani Steel (318)-The scrip saw a correction along with the metal sector. However, the fall has been moderate and good support emerged around 275-300.Buying can be considered at dips for a possible target of 350-60 in the short to medium term.
Elecon Engn (386) -One of the stellar outperformers in 2022, the scrip has gone into a correction mode and approaching its 200-dma of 352.While near term weakness could be there, buying at declines could be considered for a possible target of 450.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam