WEEKLY TRENDSETTER (OCT 8th,2021)
| 2021 | OCT 1 | OCT 8 | Ch % |
| NIFTY | 17532 | 17895 | +2.07 |
| BANK NIFTY | 37225 | 37775 | +1.47 |
| USD/INR | 74.18 | 74.98 | +1.08 |
MARKET REVIEW–The markets recouped losses of the previous week as auto, IT and banks provided the right fillip while the mid-caps and small-caps continued to do well. With results season kicking off with the IT majors, focus will be back on the Sept quarter results.
DID YOU KNOW
TATA MOTOR GETS AGGRESSIVE
The company has been in the forefront with fresh launches in the EV space. Besides it is also reportedly the frontrunner for a possible takeover of the Ford unit in Tamil Nadu. The unit has an annual production capacity of 2 lac vehicles and 3.4 lac engines. The company has an ambitious target for its EV segment which is expected to contribute upto 25% of the total PV sales in the medium to long -term, up from just 2% currently. The company plans to launch 10 more EV models before 2025 and also considering setting up of a battery plant.
BETTER LATE THAN NEVER -DIXON GETS INTO PC MANUFACTURING
Under the PLI scheme aimed at a push for “Make in India”, Dixon has tied up with Acer of Taiwan to manufacture PC s in India. Beginning with 5 lacs pa this is planned to be scaled up to 10 lacs in the next couple of years. India currently imports 86% of laptops and out of that 87% is imported from China. There is also a 37% export commitment by Dixon. Value addition due to this venture is expected to increase from 5-10% to 25%. Clearly in a laptop hungry country like India, this is a welcome move.
MARKET OUTLOOK.
The market has seen selling pressure at around 17950 for the last few weeks though it has managed to make higher bottoms which augers well. Another point to note is the weakening of rupee against dollar to nearly Rs 75. Crude also has proved stubborn and remains at elevated levels of 78-80$ which potentially spike inflation and force RBI to re-look at rates.
Some technical cues are as follows going by market trends: –
NIFTY -Near term resistance could be at 17850-900 on the Nifty and support should be around 17400-500.
BANK NIFTY -Levels of 37000-300 could be near term support and levels 38000-300 could see profit-taking.
Scrips to watch out
Couple of technical set-ups are discussed with potential trades for the coming week: –
Goodyear (1048)-After a strong base formation around 1000 the scrip looks poised to gain in the coming weeks. Buying can be considered at declines for a possible target of 1200.
FSL Ltd-(211)-One of the best performers in the past few months, the scrip saw cooling off and taken support at around 190-200 but looks poised to rise for a possible target of 250.
The economy is opening up and restrictions on travel are gradually getting relaxed. While the Covid 3rd wake still looms large one has to stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam