WEEKLY TRENDSETTER (OCT 18,2024)
| 2024 | OCT 4 | OCT 11 | Ch % |
| NIFTY | 25014 | 24964 | -0.20 |
| BANK NIFTY | 51462 | 51172 | -0.56 |
| USD/INR | 83.97 | 84.00 | 0.04 |
MARKET REVIEW-The week opened on a weak note followed by a pullback.However there was no follow up on the pullback for better part of the week as the market moved unconvincingly and finally closed below 25000 with a minor cut for the week.Global cues are supportive to begin with and it remains to be seen if the Indian markets see follow up buying .The breadth of the market was however positive which is encouraging.
INTERESTING CUES
Big bet on bio -technology
The biotech industry has seen a significant progress with biotech start-ups increasing from just 50 in 2014 to over 5000 currently.Even though there is a global slowdown in exports,Indian pharmaceuticals,biotech and bulk drugs exports have grown in double digits in 2023-24 and the same trend is expected in the current fiscal.
Significant CV scrappage potential exists
The scrappage policy announced in March 2021 proposed mandatory scrappage of vehicles older than 15 years. Following this scrappage was to be considered based on the condition of vehicles which is more voluntary in nature. This is expected to trigger a strong replacement demand.The policy is however is off to a tepid start as scrapping facilities received only 44000 applications from private applicants and 41000 from Govt Depts. Effective implementation of the policy is key to fleet modernization and increase in usage electric buses which will reduce pollution.
NIFTY –The index took support at 24750. However, the pullback was not strong as it promised to be .The index finally closed below 25000.While 24500 will be the critical support the index needs to close above 25500 for further resumption of the uptrend. Caution is advised.
BANK NIFTY-The pattern was similar to the Nifty as the pullback was not convincing.Level of 50500 remains a critical support and on the upside 51800 should be a resistance zone .On the whole caution is advised.
PICKS FOR THE WEEK
GAIL (230)-The stock has seen a good correction from levels of 245 to 210 and now on a rebound .245 has been a resistance for the last few months and several attempts have been made to break past this level.The current rebound should again test levels of 245 which should be the immediate target .
Jyoti Structure (32.5) -The stock has been recommended earlier around levels of 25.After a long consolidation the stock touched a 52 week high of 35 before retreating .Accumulation should be considered for possible target of 45-50 in the long term.
Wishing all readers, a great trading week! ,
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam