WEEKLY TRENDSETTER (SEPT 15TH,2023
| 2023 | Sep 1 | Sep 8 | Ch % |
| NIFTY | 19453 | 19820 | +1.89 |
| BANK NIFTY | 44436 | 45156 | +1.62 |
| USD/INR | 82.74 | 82.93 | +0.23 |
MARKET REVIEW–The week was fully in control of bulls even though global cues were not supportive. Lower levels were lapped up by buyers and by close of week the Nifty again looks poised to make an attempt to touch the magic 20000 level. Bank Nifty saw a recovery late during the week.
Interesting cues
HOTEL LEELA ON REVIVAL PATH
The hotel chain is back in a new avatar as HLV Enterprises post acquisition by Brookfield for $576 mn. While the financials still indicate that the struggle to get into black is still in progress, management commentary suggests a new sense of optimism which emanates from the fact that major events are lined up in the next 6 months beginning with the G-20 summit followed by the Cricket World Cup. Currently the chain has 5 fully owned hotels and 7 managed hotels. The company owns land in Agra on which work has begun and expected to be completed by 2026.Some added attractions are new branded products and services like Tishya (fragrances and cream), Aujasya (wellness menu). The stock is hitting 52-week on a regular basis.
Telecom capex likely to moderate from FY25
The capex heavy industry has been on a relentless spending spree with 5G rollout and only Jio and Airtel able to match up to the spending requirement .VI has been on a struggle path with regular subscriber loss, tepid ARPU and an already stretched Balance Sheet, aggravated by the adverse AGR decision by the SC in 2020.However,the industry seems to be settling down after upheavals seen in the past decade which has left the turf open for 4 players though the chief beneficiaries are Jio and Airtel. ARPU in India are at the bottom and any improvement from these levels could see a sharp spike in profitability for the telcos.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index has surpassed the Aug high in the first week of Sept itself and now hopes are again building up for a possible 20000 level in the coming week.
BANK NIFTY-The index did a late catch up during the week and closed above 45000. HDFC Bank with its large weightage on the index helped the cause on the way. Levels of 45500-600 could be near term profit taking levels.
PICKS FOR THE WEEK-
BHEL (144)-After a brief consolidation the stock again looks poised to resume its uptrend and levels of 155-60 could be expected. Levels of 140 should ideally provide decent support.
CDSL-(1282)-The stock has not been able to emulate its 2020-21 performance and has been relatively subdued. However, some serious volume action was seen with a price breakout above 1250 which could see further upsides in the coming weeks. Levels of 1350 -80 could be expected in the short term.
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Krish Subramanyam