WEEKLY TRENDSETTER (JAN 17,2025)
| 2025 | JAN 3 | JAN 10 | Ch % |
| NIFTY | 24004 | 23431 | -2.39 |
| BANK NIFTY | 50988 | 48734 | -4.42 |
| USD/INR | 85.78 | 85.97 | +0.22 |
MARKET REVIEW-The market was weakish from the start of the week itself and relentless selling saw the indices sliding below critical levels by close of week. Banking counters were also not spared and bore the brunt of selling.IT saw buying on the back of stable results from TCS and some FMCG counters like HUL saw defensive buying.
INTERESTING CUES
Syrma SGS to get into laptop manufacture
Taiwan ‘s MSI Limited, a global leader in AI PCs, gaming, content creation, business and productivity and AIoT solutions, has tied up with Syrma for manufacturing laptops under the Make in India initiative. Dixon Technologies has already made rapid strides in this space and with an ever-expanding domestic market and potential exports, new entrants are looking to capture the lucrative market.
VGuard to increased capacity
The company has presence in electronic and electrical segments and now plans to expand capacity in 2025 in Vapi (kitchen appliances) and Hyderabad (fan and battery). Inhouse production currently accounts for 65% of its products. The units are already operational and official inauguration is scheduled this month. This domestic manufacturing capacity comes under the Govt s Make in India initiative. The company is also planning a fan production unit near Hyderabad. On the performance front while revenue has seen a decent growth in the last 5 years, profits have not kept pace and margins are lower than its peers. This is despite having low interest cost which leaves scope for improvement in margins in the long run.
NIFTY –The bullish engulfing pattern on the index proved to be misleading as the entire hope of a recovery sunk with selling every day of the week. With the breaching of 23500 the index now looks heading towards the Nov low of 23263 and could well test 23000 in the coming week. Any recovery is likely to face resistance at 23500-600.
BANK NIFTY-The sharp fall now opens possibilities of it going down to the June low of 46077 from where the recovery started. The private banking space looks vulnerable and with high weightage in the index, recovery could face resistance around 49500.
STOCK PICKS
L&T (3535)-The stock has been moving in a narrow band in the past few months. However, with selling pressure increasing it looks like breaching the 3500 level on the down side. Any recovery above 3575 should see selling pressure. On the downside levels of 3300 looks likely.
AB Capital (167) -The scrip breached the critical 175 level which was acting as a support. Selling could be considered for possible levels of 150 in the coming weeks.
Wishing all readers a very happy 2025 and pray it brings cheer to your families!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam