WEEKLY TRENDSETTER (JAN 12,2024)
| 2024 | DEC 29 | JAN 5 | Ch % |
| NIFTY | 21731 | 21711 | -0.09 |
| BANK NIFTY | 48292 | 48159 | -0.28 |
| USD/INR | 83.19 | 83.16 | -0.04 |
MARKET REVIEW-The first week of the New Year might look to have been flat but there was intraday volatility on almost all days. The Bank Nifty infact swung 1000 points but clawed back to close near the week high. HDFC Bank again called the shots in both indices with its heavyweight presence .IT and auto showed some weakness with Maruti looking to breach critical levels on the downside.
INTERESTING CUES
Power focussed infra firms expected to disburse upto 2.9 lac cr in FY24
The share of funding by these IFC s (PFC and REC) exposure has increased from 55% in FY 19-20 to 59% in FY22-23 and expected to increase to 63% in FY23-24 leaving the banks behind. Power demand is expected to increase at a CARG rate of 7% in the FY22-27 period. Both the companies are expected to show robust growth in the remaining quarters of FY24 for which results are expected. With aggressive fund raising a volume led growth could further boost profitability with the NIMs expected to be steady.
Jimny to account for 12% of Maruti ‘s exports by 2028
The SUV which was launched in 2023 is selling nearly 2500 units per month. The trend is increasing and could cross 4000 in the coming months. The 5-door SUV has seen overwhelming demand since its launch. The exports are heading for the 10000 mark which also includes the 3-door version which was launched in 2020.The company has been witnessing some slowdown in the last few months and the demand for Jimny could be just the boost it needs to maintain the momentum.
Forex reserves at the highest in the last 21 months
The forex reserve stood at $623 bn at the end of Dec 23. Since March 23 it has increased by $44.75 bn.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index touched all-time high of 21834 in the beginning of the week after which profit taking creeped in and the index touched 21500 before staging a strong comeback. With result season kicking off next week the IT majors will hold centre stage and the index could continue with its volatile ways.
BANK NIFTY-The index closed flat for the week. However, during the week, it saw 1000 points swing. Levels of 47500 should ideally hold and on the upside 48600 could be the near-term cap.
PICKS FOR THE WEEK
PFC (404) –The stock saw a stupendous rise in 2023 and has been taking support at around 380. Accumulation is advised for a modest target of 435 in the coming weeks.
HCC (31.2)-After touching a high of 34 last month the stock went into a modest correction mode. However, it looks towards resuming its uptrend and could be heading for levels of 38-40 in the coming weeks.
Wishing all readers, a great 2024 and a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam