WEEKLY TRENDSETTER (July 15th,2022)
| 2022 | July 1 | July 8 | Ch % |
| NIFTY | 15752 | 16220 | 2.97 |
| BANK NIFTY | 33539 | 35124 | 4.73 |
| USD/INR | 78.9 | 79.29 | 0.49 |
MARKET REVIEW–The week started on a positive note and despite a mid-week scare managed to regain strength aided by some positive news from the crude front which saw a good correction.
INTERESTING MUSINGS
EV scooter sales are just 3% of the registered number
Despite the hype around EV vehicles the consumer demand is far from the desired level. Between Jan-June the number of EV registered scooters were 2.12 lac. With 6-8 mn scooters sold per annum the industry is targeting 10% of the same for EV s. Interestingly 70% of the 18-20 million 2-wheeler market is motorbikes which has yet to see an electric variant. Apparently making electric motorbikes is more complex, requires more power and might still be some way down the line. The recent spate of fire accidents in the EV scooter segment might have dented confidence. However, with the established brands now ramping up production this could help allay fears of mishaps.
Tata Chemicals says no no to EV
–Another surprising news in the EV segment was that Tata Chemicals has shelved plans of setting up battery plant for EVs which comes as a surprise as the market was betting big on the same. Instead, the company plans to ramp up capacity of soda ash which is one of the principal raw materials used in the production of lithium carbonate, an important component in EV batteries.
Rupee weakening could be a cause of worry going ahead
Indian companies raised around $38.2 bn in FY21-22 of which only 56% is hedged. Another point of concern is that more than 40% or $267 bn worth of external debt is due for repayment in the next 9 months which is equivalent to 44% of India’s foreign exchange reserves.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The index clearly showed signs of strength and had marched above 16200 by the end of week. Levels of 16300-400 could see profit-taking and 16100 should ideally hold on for the rally to gather steam.
BANK NIFTY– The index raced past 35000 before some profit-taking emerged. Both private and PSU banks lent support to the index which should now find support around 34300 on any correction. Caution is advised around 35500 levels.
SCRIPS TO WATCH OUT
Power Grid (219) –The stock has been resilient in the market correction in the past few months and has taken support around the 200-dma of 205-210.Buying could be considered for possible levels of 235-40.
Jyothi Lab (166)-The stock has been a steady performer in the last few weeks. Taking support at 150 (200 -dma) it has managed to close above 160 on decent volumes. Buying around 155 could be considered with a possible target of 175 in the coming weeks.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam