WEEKLY TRENDSETTER ( AUG 8,2025)
| 2025 | JULY 25 | AUG 1 | Ch % |
| NIFTY | 24837 | 24565 | -1.1 |
| BANK NIFTY | 56529 | 55617 | -1.61 |
| USD/INR | 86.59 | 87.51 | 1.06 |
MARKET REVIEW-The markets were caught in a vortex as corporate results continued to be largely disappointing and to add to the woes Trump’s imposition of 25% tariff on India soured sentiments further and by close of week the indices and broader markets had eroded investor wealth. Trump s policies have not spared any country and all markets were grappling with the possible implications of steep tariffs.
BACK TO RESULT SEASON
June quarter results are trickling in. Let’s explore some of them to get cues of where the stocks could be heading.
Rs in cr, Bracket indicates ch in % against June,24 quarter.
| Company | Revenue | Net profit |
| HEG | 617(+8) | 88(+4300) |
| Graphite | 665(-8) | 133(-43) |
| Laurus Labs | 1570(31) | 161(+1241) |
| Cigniti Tech | 541(+15) | 66(500) |
HEG (533)-The company benefited from higher graphite electrode prices and strong demand. Better margins, higher capacity utilization and cost control ensured higher profits. It also announced capex of Rs 650 cr to add 15000 tpa in capacity. With an EPS of 5.4 for the quarter and encouraging product demand the stock has attracted buying
Graphite India –The company is also a manufacturer of graphite electrodes but unlike its competitor HEG, it saw a slump in profits which is attributed to a higher raw material cost. However, the company is optimistic of growth prospects and has announced a Rs 600 cr expansion plan by 25000 tpa over 2 phases. With high internal accruals the company can leverage on the same to fund the expansion programme. With an EPS of Rs 6.87 for the quarter the scrip is likely to attract buying at lower levels.
Laurus Labs – The June quarter saw a jump in margins and profitability. The company revenue profile comprises of CDMO and generics It was largely driven by strong CDMO momentum and favourable margins from high-value projects.The management commentary was encouraging with plans to explore advanced therapies. The impact of 25% US tariff may be moderate as it still has less presence in US markets compared to others like Dr Reddy’s or Sun Pharma. However further foray into US market could be under cloud for now. With a Rs 2.9 EPS for the quarter the stock has already seen a steep rise in the past few months and could attract profit taking.
Cigniti Tech (1609)-The company’s results mirrors the growing dominance of AI, digital assurance, etc. where it has a strong presence. It has made rapid strides over the years and for the June quarter posted an EPS of Rs 24. The growth prospects are encouraging and the stock has attracted buying.
NIFTY –The index had already forewarned last week the possibility of weakness by breaching the 25000 level. The weakness continued and the index had slid closer to 24500 by close of week. The relentless weakness now can lead to levels closer to 24000 in the days to come where the 200-dma could provide some respite.
BANK NIFTY-The index showed a brief reprieve to touch 56400 but failed to hold on and slipped to 55600 by close of week and looks like 55000 could be under threat as well.
STOCK PICKS
NIFTY-The index looks like heading for 24000 and a hedge for the portfolio is also necessary. One could look to buy 24000 Aug 28 strike put around levels of 80 in the coming days for a possible target of 140 and and stop loss of 60.
Ajax Engineering – (674) -A recent listing which touched a low of 583 and has seen buying. Accumulation could be considered for a possible target of 750 in the coming weeks.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam