WEEKLY TRENDSETTER (OCT 4,2024)
| 2024 | SEP 20 | SEP 27 | Ch % |
| NIFTY | 25791 | 26179 | 1.50 |
| BANK NIFTY | 53793 | 53834 | 0.08 |
| USD/INR | 83.60 | 83.69 | 0.11 |
MARKET REVIEW-The week was very eventful and global cheer from US was followed up by China with a rate cut. The Indian markets saw the indices touching lifetime highs. The coming week will be a truncated one. Financials could be in focus as rate expectation from RBI will increase.
INTERESTING CUES
Green energy arms of PSU’s set to get listed
Some of the large PSU s like Coal India, ONGC, SJVN, NHPC, IOC and NLC India have already formed new companies for their green energy ventures’ Green has already filed for IPO of Rs 10000 car as it has a huge solar energy asset. The Centre has set an ambitious target of having an installed RE capacity of 500 GW by 2030.The IPOs through which these subsidiaries will unlock value should bring cheer to investors in the coming times.
Piramal Pharma sets high targets
The company plans to double its revenue and triple its EBIDTA by 2030 powered by 3 segments-contract development and manufacturing (CDMO) , complex hospital generics and consumer healthcare. The CDMO arm continues 58% of the revenue and this is expected to continue. The company has a huge debt of Rs 4000 cr which is expected to be scaled down gradually. The company’s last few years struggle has been largely due to sharp rise in interest costs which has risen by 2.5 times in the 2021-24 period. Margins have also not been supportive and the last 2 years has seen the company posting losses. Paring down the debt could largely improve the financials of the company.
Thermax on a transformation path
The boiler maker is transforming from a provider of equipment and heating solutions to an energy transition company with its foray into biomass and technologies that enable its boilers to run on cleaner energies. The company also plans to transform from a product supplier to solution provider: if a customer wants to change from coal to biomass, the company will not only set up the plant but also source the biomass and operate it. This could be a viable solution for customers who do not want to go through the grind. The company’s performance in the last 2-3 years has been sluggish with both topline and bottom line not showing the expected growth. The transformation is on the right lines to get momentum back on track.
NIFTY –The index has raced past 26000 with the last 1000 points run coming in just 4 weeks. The coming week could see some consolidation with support expected around 25900-26000 and resistance at 26350-400.
BANK NIFTY-The index managed to catch up with the pace of Nifty thanks largely due to heavyweights HDFC Bank and ICICI Bank. The PSU banking pack is showing signs of a pull back and the coming week should see the momentum continuing. Levels of 53500 should act as a support and on the higher side 54400-500 could see some selling pressure.
PICKS FOR THE WEEK
ICICI Pru (791)-The stock saw a good Sept series and has been on a steady uptrend. It is on the verge of a strong break out next week. Levels of 780-85 should be ideal for entry for a possible target of 840 in the coming days.
Hind Petro (437) -The stock saw good rollover for the Oct series. Lower levels around 425-30 should be ideal to enter for a possible target of 470 in the coming days.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam