WEEKLY TRENDSETTER (OCT 11,2024)
| 2024 | SEP 27 | OCT 4 | Ch % |
| NIFTY | 26179 | 25014 | -4.45 |
| BANK NIFTY | 53834 | 51462 | -4.41 |
| USD/INR | 83.69 | 83.97 | 0.33 |
MARKET REVIEW-The week was expected to be of consolidation. However, it turned out to be of a strong correction. This was triggered partly by geopolitical tension and also due to some regulatory changes proposed by SEBI which were actually largely in the right direction. The coming week will see RBI meet for any change in interest rates.
INTERESTING CUES
FIRST INDIAN RATING AGENCY TO GIVE OUT SOVEREIGN RATINGS
CareEdge Global ,a subsidiary of CARE Rating Ltd has entered the sovereign rating space and has assigned sovereign ratings to 39 countries including India.In a space which is largely represented by agencies from the developed world like S&P,Fitch,Moody’s,this is a welcome step as ratings could be presented with a different perspective.Eg:India’s rating as per Fitch is BBB- whereas CareEdge has assigned rating of BBB+.While macro fundamentals are strong ,low per capita income due to a huge population seems to be a drag.
AI POWERED PC SHIPMENTS EXPECTED TO SURGE
The increase in surge is expected to be as high as 43% in 2025 as against 17% in 2024. AI PC has been defined by Gartner as those embedded with neural processing unit (NPU). Infact Gartner predicts that by 2026, AI laptops will be the only choice available to large businesses.
BALRAMPUR CHINI ENTERS BIOPLASTIC MARKET
Balrampur Chini intends to set up a plant for polylactic acid with a production capacity of 75000 tons per annum. The company plans to use just 10% of the current sugar production for manufacturing this product.
This is the latest product which could be used as a substitute for plastics based on crude derivatives. Bioplastic are made out of bio degradable or renewable resources. The market for this currently in India is small and this is surprising as the trend seems to be picking up fast outside India.
NIFTY –The index saw a dip below 25000 before it managed to close just above that for the week. Metals were to some extent better performing compared to the other sectors. In the near term the market looks oversold and a bounce to 25200-300 could be seen. Selling pressure could be seen above these levels .24800-25000 could be decent levels of support. Caution is advised.
BANK NIFTY-The index bore the brunt of selling pressure. Though PSU banks were relative out-performers, private sector large caps saw sharp cuts. High volatility could be seen in the coming week. Any recovery closer to 52000 could see selling pressure. Lower levels of 51000 should see some support emerging. On the whole caution is advised.
PICKS FOR THE WEEK
Fresh picks not considered. Last week’s recommended scrips maintained
ICICI Pru (756)-The stock saw a good Sept series but has seen a sharp cut last week. However, the current levels around 750 could be used to average for a bounce upto 775 where exit is recommended .740 could be kept as stop-loss
Hind Petro (407) -The stock saw good rollover for the Oct series. While it was recommended to be accumulated in the range of 425-30, some averaging at current levels could be considered. Exit can be considered around levels of 430-35. A strict stop-loss of 400 could be kept.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam