WEEKLY TRENDSETTER (Sept 23rd,2022)
| 2022 | Sep 9 | Sep 16 | Ch % |
| NIFTY | 17833 | 17531 | -1.69 |
| BANK NIFTY | 40415 | 40776 | 0.89 |
| USD/INR | 79.57 | 79.74 | 0.21 |
MARKET REVIEW–The week turned out to be very volatile and towards the close attracted profit-taking which took the Nifty close to 17500 and the Bank Nifty also gave up most of the gains after touching an all time high of 41840.Global markets were also on a sell-off mode on the back of a sharp sell-off in the US market mid-week.
INTERESTING CUES
Higher advance tax for Sept quarter
The corporate advance tax has risen by 22.6% to 1,30 lac cr over the corresponding previous quarter.TDS collections have also grown by 35% to 1.71 lac cr. With the Aug GST collections also showing a 28% growth to 1.44 lac cr, the economy appears to be on a strong footing despite global uncertainty, high crude prices and high inflation. With the oncoming festive season which is typically a large consumption driver for all businesses collections could be expected to be even more robust.
Tata Motors arm Tata technologies eyes IPO
Most talked about for TaMo is its EV venture. However, it has the above subsidiary in which TaMo holds 74% stake. The company reported revenue of Rs 3529 cr for FY22 and PAT of Rs 437 cr. It has 4 verticals namely automotive, aerospace, industrial machinery and industrials. It has workforce of 9300 employees worldwide serving clients from facilities in North America.
Vodafone Idea decides not to convert its AGR dues into equity
The above relates to accrued interest on deferred AGR dues for FY18 and FY19.It will be interesting to see how things develop in the coming months with the pending OTSC case as well as the AGR revision which have kept the market in suspense for the last one year. With subscriber base dwindling month after month, the company is clearly struggling and any relief will go a long way in ensuring that it remains the 3rd player in the vibrant telecom industry.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The index made a triple top at 18100 before a sharp fall which even broke the 17500-strike making the put writers run for cover. With the IT counters not witnessing follow up buying, the market could see another struggle at around 17800 on any attempt to bounce bank.
BANK NIFTY-The index briefly touched 41800 before strong profit-taking taking the index to a low of 40500.The index looks overbought and any attempt to go past 41200 could witness selling pressure.
SCRIPS TO WATCH OUT
Astra Microwave (343)-The stock has been a strong out-performer in the last 6 months. After touching a high of 375, it has seen a mild retracement. Accumulation around 320-340 could be considered. The scrip could scale past 400 in the coming weeks.
India Pesticides (306)-The scrip is a recent listing. After listing at around 370, it corrected to 200.250-75 is a decent support level. Buying at declines could be considered for a possible target of 375 in the coming months.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam