WEEKLY TRENDSETTER (JULY 9TH ,2021)
| 2021 | JULY 2 | JULY 9 | Ch % |
| NIFTY | 15722 | 15690 | -0.20 |
| BANK NIFTY | 34809 | 35072 | 0.76 |
| USD/INR | 74.71 | 74.61 | -0.13 |
MARKET REVIEW –The Nifty continued with the sluggish trend despite an encouraging start at the beginning of the week.IT was the laggard of the week following TCS results.
DID YOU KNOW?
Even India oil marketing companies have strong R&D?
State-owned BPCL has bagged as many as 80 national and international patents in the past two decades and approvals for 53 more filings are pending, for various innovations including the world’s cheapest and the fastest crude oil assaying tool BP Marrk.
Its patents and advanced research are in areas such as crude oil evaluation, oil refining catalyst development,eco-friendly lubricants,process simulation and modelling, anti-corrosion research, and bitumen-related areas. An interesting array of studies which could potentially aid margins going ahead.
MARKET OUTLOOK.
1.Some consensus was expected to be reached in the OPEC meet. However, it proved inconclusive. Subsequently oil prices also turned a bit volatile and some profit taking was seen.Some price correction in crude prices would be welcome news for our economy.
2.The June quarter results continue with INFY and Wipro expected to announce earnings next week. Mangalam Cement, Ponni Sugar and Astron Paper are other results expected which may appear low key but these 3 respective sectors have been on buyers’ radar in the last few months. Some cues could be taken.
3.The US markets were volatile during the week. After a sharp sell-off ,the recovery was also equally swift on Friday and the cues could rub off on Asian indices which were largely negative .The Nifty level of 15900 again proved slippery and markets failed to sustain above those levels .Results will again be critical as June quarter results have started trickling in .TCS results were greeted with profit-taking and the coming week will see the other large cap IT companies announcing results .Broadly results should be seen sequentially rather than y-o-y as the June ,20 quarter was a wash out for most companies as it was the first Covid affected quarter. The Nifty could continue to be in a range and levels of 15800 could again see selling pressure emerging.
Some technical cues are as follows going by market trends
Scrips to watch out
IDBI (38)-The scrip has been an underperformer in the bull run. However, accumulation is evident in the price band of 35-38 which are also long-term support levels. With it also being a disinvestment candidate, the scrip has potential to fetch decent returns in the long run. Target of 47-50 could be expected.
Balmer Lawrie (138)-The scrip has gone on a consolidation mode for the last few weeks. Risk reward appears favourable at current levels for target of 155-60
Some Covid concerns have returned again and States are rightfully taking a cautious stance. However, more worrying is the absence of rains which by now should be plentiful in cities like Mumbai! Maybe a revival in rains will be the ideal tonic for markets! Let’s hope for the best!
Have a great trading week!
Krish Subramanyam