WEEKLY TRENDSETTER (JAN 5,2024)
| 2023 | DEC 22 | DEC 29 | Ch % |
| NIFTY | 21349 | 21731 | +1.79 |
| BANK NIFTY | 47491 | 48292 | +1.69 |
| USD/INR | 83.17 | 83.19 | +0.02 |
MARKET REVIEW-The week ended with good gains and for the month Nifty gained 7.9% and Bank Nifty gained 8.5% . The gap up provided in the beginning of the month on the back of the BJP sweep in Assembly elections gave a huge boost in the overall gain. The New Year promises to be good though in the very near term the market could witness some profit-taking.
INTERESTING CUES
While iron ore exports to China have zoomed steel imports from China rising
Iron ore is a key feedstock in the manufacture of steel. This has seen export to China rising by a whopping 400% rise y-o-y basis. Iron ore prices have risen 35% over the past 7 months and while the local demand for steel in China is muted, it has been an active exporter of steel due to production cuts globally. There was an export duty till last year on iron ore export which kept exports under check.While on one hand iron ore exports have been rising ,the steel dumping into India has had the local steel manufacturers worried and they have already raised concern about the same .
Luxury house demand on the uptrend
This has been a clear trend emerging with luxury homes in the 5-15 cr segment witnessing a sharp rise in demand. The expectation for 2024 is that the stock market boom will see a shift in asset class to real estate. Prices in the metros have already seen a sharp rise over the past 18 months. With rentals rising sharply, the demand for housing is surging.
Unclaimed deposits rise 28%
The banks have seen this rise to Rs 43000 cr in FY23 out of which Rs 32000 cr is with PSU banks and the balance with private sector banks.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index closed at the near high of the month of 21800 and an attempt could be made to touch 22000 However, odds are high that some profit-taking could creep in. On the downside 21300-400 should provide decent support.
BANK NIFTY-The index has been largely boosted by the private peers particularly HDFC Bank and going into next week 49000 could be touched. Some consolidation would be healthy after a hefty rise in Dec.
PICKS FOR THE WEEK
BCL Inds (66)-The scrip has been on a consolidation phase. After touching a high of 79 it has cooled of and is back to good support levels which should attract buying. The scrip could be considered for accumulation for a possible target of 80.
KSL Limited (484)-Earlier known as Kalyani Steel, the scrip has seen a sharp spike. Buying could be considered around levels of 470 for a possible target of 520 in the coming weeks.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam