WEEKLY TRENDSETTER (JAN 14th ,2022)
| 2021 | JAN 7 | JAN 14 | Ch % |
| NIFTY | 17813 | 18256 | 1.67 |
| BANK NIFTY | 37739 | 38370 | 2.49 |
| USD/INR | 74.30 | 74.13 | -0.28 |
MARKET REVIEW–The New Year party continued for the 2nd week running and though some mild profit taking was seen towards close of week the gains were broad-based.
INTERESTING TIDBITS
Digital India story soars in 2021 and likely to continue
The year 2021 was an inflection point for the Digital India story. Thanks to the pandemic, the country grasped what it really means to be on a digital roadmap. The Unified Payments Interface (UPI) now comprises 60% of total payments by volume, with digital payments touching $300 bn in FY21 — from a mere $16 bn in FY16, according to a CLSA report. The report further says that digital payments are expected to reach $0.9-1 trillion by FY26, or 30 % of Indian consumption. Experts foresee a huge disruption in financial technology, especially in embedded finance, and areas of lending and BNPL (Book now and pay later). Despite regulatory challenges for cryptocurrency, there could be interesting innovations in the backend of crypto, that is, in blockchain and crypto mining. Also, direct-to-consumer (DTC) — from the delivery of meat to cosmetics — is expected to undergo a huge expansion. Social commerce, along with video commerce, will also play a huge role in terms of how India shops.
MARKET OUTLOOK.
Some technical cues are as follows going by market trends: –
NIFTY-The index managed to scale past 18000 and closed with healthy gains. The near-term trend looks overbought and some cooling off could be expected and levels of 18100-150 could act as a good support.
BANK NIFTY -The index saw a more subdued uptrend after a whopping rise in the first week of 2022. Levels of 37500 could be visited which should act as a good support area.
SCRIPS ON RADAR
Some scrips which could be looked at are as follows: –
NMDC (146)-This scrip has been underperforming for the last 4-5 months but levels of 130 -135 saw good support and good buying has emerged. The long-term chart looks like an uptrend to levels of 160-65 could be seen in the coming weeks. Ideally 140-145 could act as an accumulation zone.
Adani Port (779)-The scrip touched a high of 901 and subsequently corrected to 650 and has been in a band of 650 -750 for a few weeks. However, weekly setup suggests an attempt to breakout on the upside which could take the scrip to levels of 850.Buying can be considered at dips.
Wishing all readers, a very happy New Year. Retail has been the backbone of the rally in 2021 and this trend could continue in the coming years as equity investing attracts the young and old alike.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam