WEEKLY TRENDSETTER (SEPT 27,2024)
| 2024 | SEP 13 | SEP 20 | Ch % |
| NIFTY | 25356 | 25791 | +1.72 |
| BANK NIFTY | 51938 | 53793 | +3.57 |
| USD/INR | 83.88 | 83.60 | -0.33 |
MARKET REVIEW-The week largely belonged to the bulls and this time private banks were in the forefront as Bank Nifty outperformed the Nifty and hit a life time high. The drag on the market were the PSU pack which continued to see profit-taking and many are down in excess of 20% in the last few weeks.
INTERESTING CUES
NRI investments in residential properties rising
The share of NRIs is expected to touch 20% by 2025.The rally in the stock market is attributed to the rise in interest in properties. More than half of the purchases are in the range of Rs 90 lacs -1.5 cr and about a fifth in the range of Rs 1.5-2.5 cr and a tenth above that. Preference is obviously in properties with global standards and better amenities.
STT mop up already at 75% of FY24-25 Budget estimates
The stock market rally is clearly filling the coffers of the Govt at a swift pace. In the April -mid Sept period STT revenue was placed at Rs 26000 cr as against 13000 cr in the corresponding previous period. The target for the whole year was placed at Rs 37000 cr.
GAIL planning to connect gas fields to national grid
Isolated gas fields are planned to be connected to the national grid which will make available 3.5 mscmd for CNG and PNG customers at an economical rate as logistic costs go down.
Double whammy to private telcos
To begin with the much-expected relief from SC on the AGR matter did not materialize as the petition for re calculating arithmetical errors were swept aside and this puts VI in a precarious state as the moratorium period ends in 2025 and it will have huge payouts which will push it to the brink. Another unexpected blow came in the form of PSU giant BSNL managing to add subscribers at the cost of Jio, Airtel and VI in the month of July. It gained 2.91 mn customers taking its subscriber tally to 49.5 mn .VI continued its losing streak as it lost 1.41 mn customers to the PSU giant which is being actively promoted by the Govt and huge outlays were announced in the FY24-25 budget of around Rs 82000 cr, up from Rs 64000 cr in FY23-24.
NIFTY –The index closed at an all-time high level for the week. The move in the index was on expected lines. While private banks and FMCG were gainers, IT had a mixed week. A dash to 26000 looks very likely while 25400-500 should see support.
BANK NIFTY-The index started its upward journey for the week largely due to the private banks while the PSU pack were reeling under selling pressure. With the large heavyweights ICICI Bank and HDFC Bank on a tearaway rally 54000-54500 is a possibility in the coming week which will also see the monthly derivative expiry. The PSU pack could be the dark horse as short covering after such a steep cut cannot be ruled out.
PICKS FOR THE WEEK
Hind Foods (651)-The stock has been moving in a narrow band in the last 18 months. However last week it closed with a break out which should see it touching levels of 680-700 in the near term. Buying can be considered around 640-50. The stock also merits attention for the long run as levels of 800 could be seen.
PFC (482)-The stock has been on a strong correction mode and going into monthly expiry critical support of 465 could again be revisited. Any level close to 470 could be used for buying for a possible rebound to 495-500.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam