WEEKLY TRENDSETTER (APRIL 11,2025)
| 2025 | MARCH 28 | APRIL 4 | Ch % |
| NIFTY | 23519 | 22904 | -2.61 |
| BANK NIFTY | 51565 | 51502 | -0.12 |
| USD/INR | 85.53 | 85.15 | -0.44 |
MARKET REVIEW-The week began on a negative note on apprehensions of stiff tariffs from Trump. The rest of the week was a reaction to the tariffs which initially was thought to be manageable but when the realization began to sink in in a global context, the market sank and the Nifty went below 23000.Metals and IT were the worst hit and even textiles and pharma reversed early gains as tariffs were being considered for these sectors as well. Going into weekend matters have gone worse as China has retaliated in a severe manner imposing 34% tariff on all US imports. The US markets went on a tailspin and the beginning of the coming week could be terrible unless some dramatic announcement comes to soothe nerves.
INTERESTING CUES
Electronic waste offers a challenge and opportunity
India is only second to China and US in the generation of electronic waste. This waste generation will only accelerate in the coming years with economic progress. However, this waste is proving to be an environmental hazard. Recycling methods which can use this waste to generate some productive bye-products is already being attempted by a method called pyrolesis. However, optimization of this process is being perfected which will enable extraction of more useful substances like liquids rich in aromatics as well as hydrogen and methane.
Room AC penetration likely to rise sharply
The penetration of room AC is likely to accelerate from the current 10% to around 50-60 % over the next 10-15 years driving exponential demand. The overall room AC market is around 15 million units with online sales accounting for 8%. Commercial air conditioning is another sector which is booming with expanding data centres. Companies like Blue Star, Voltas, Havells lead in this space of room ACs.
NIFTY –The index was consolidating well and looked poised to go past 23800 during the week. However, events transpired which not only negated any recovery, bulls were scrambling for cover as near panic situation saw the index slip below 23000.Going by the global cues, odds are high that the index could see levels closer to 22000 in the coming week. High volatility could be expected and caution is advised.
BANK NIFTY-The banking counters were the only ones to escape the wrath of the bears. Towards close of week though only the private banks were still able to escape selling and the PSU banks saw dwindling of gains made in the last few days. The index closed flat for the week. The coming week could be volatile with RBI expected to announce its stance on April 9. Rate cut expectations are high but in the current global environment, it looks difficult.
STOCK PICKS
The coming week could see high volatility and options could be used to make opportunistic gains.
NIFTY -The index could see intra -day dip to 22100 during the week where short covering could emerge. An April 30 23000 call which closed at 345 could slide to around 50-100 and any rebound to even 22500 could see the price moving up swiftly. A stop-loss of 25 could be kept.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam