WEEKLY TRENDSETTER (JAN 21st,2022)
| 2021 | JAN 14 | JAN 21 | Ch % |
| NIFTY | 18256 | 17617 | -3.50 |
| BANK NIFTY | 38370 | 37574 | -2.07 |
| USD/INR | 74.13 | 74.40 | 0.36 |
MARKET REVIEW–The expected correction turned out to be more severe than anticipated as the Nifty slid way below 18000 and going by cues available looks like some more downside could be seen.
INTERESTING TIDBITS
TESLA WOEING GATHERS STEAM
With budget round the corner the Centre wants a firm commitment from Tesla on local manufacturing of electrical vehicles in line with its Make in India vision. Along with that, it wants an investment plan of the company ahead of any discussion on tax sops. According to reports, the Centre has expressed reservation over the company’s view that it could begin with local sourcing of components before shifting to manufacturing in India. Currently 60% import duty is levied by India on EVs priced $40,000 (about ~29.75 lakh) or less and 100% import duty on EVs priced above $40,000.
Meanwhile several States are queuing up to welcome Tesla and set up manufacturing facilities in their respective States.
ITC FOR SPECTRUM
ITC has asked the telecom regulator to reserve spectrum for enterprises such as itself at a ‘nominal cost’, so that they can control and deploy their own dedicated private cellular networks based on their ‘in[1]house capabilities’. Interestingly there is a global precedent to this as 45 countries have assigned 5G spectrum for private network and 370 global networks have been deployed. In Germany majors like BASF, BMW, Bosch, Lufthansa, Siemens and Volkswagen already enjoy such facilities.
It would be interesting to see how things take shape in India as the telecom battle has obliterated several players and currently only 3 are operating where sustenance of VI itself is in question.
MARKET OUTLOOK.
Some technical cues are as follows going by market trends: –
NIFTY-The index saw a sharp sell off and has now formed a bearish weekly engulfing pattern and 18000-100 could act as a resistance now.
BANK NIFTY -Though the fall over the week was less severe than the Nifty, rises were sold into on all the days and thus downside to levels of 36750-37000 could be seen in the coming week.
SCRIPS ON RADAR
Some scrips which could be looked at are as follows: –
SAIL (102.55)-The scrip has not participated in the metal rally in the last few weeks and has seen selling pressure at every rise. Selling could be considered around 105 for target of 92 in the coming weeks.
Berger Paint (745)-The scrip has seen selling around levels of 775 -800 in the last few months and now is approaching long term support levels of 715-20. Odds are high this level could be breached and possibly heading towards 650 -675 in the coming weeks.
Trade with caution and look to book some profits on the eve of budget.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam