WEEKLY TRENDSETTER (MARCH 25TH,2022)
| 2022 | Mar 11 | March 18 | Ch % |
| NIFTY | 16630 | 17287 | 3.65 |
| BANK NIFTY | 34546 | 36428 | 5.45 |
| USD/INR | 76.35 | 75.80 | -0.72 |
MARKET REVIEW–The week turned out to be a stellar one for bulls as global sentiments improved towards latter half of the week and markets rallied. The 4-day week for the Indian markets saw a huge comeback led by banking and FII buying which aided the rupee to gain.
INTERESTING TIDBITS
5G revenue expected to see strong growth
India’s 5G revenue is expected to touch $9 bn by 2026 and account for more than 35% of the total revenue. Globally the growth is expected to be higher as 64% of the total revenue is expected to be garnered by 5G. In India the transition from 2G and 3G to 4G is still on as data consumption is still on the rise. The growth in 4G subscribers is still expected to gather momentum for the next couple of years. However, with a 4-market player scenario the prospects for telcos look exciting as tariffs in India are still one of the lowest in the world.
Russia s offer to sell crude at heavy discounts comes to the aid of India
Sanctions on Russia notwithstanding by US, the immediate impact was a sharp surge in oil prices which sky-rocketed to $115 per barrel which was in any case unsustainable. However, Russia’s counter offensive came in the form of heavy discounts and India readily took advantage of the same as IOC, HPCL, MRPL accepted the offers which also could mean that the sharp hike in petrol, diesel prices may not happen as was largely expected post the Assembly elections.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The index outperformed its global peers and posted the sharpest gains in recent times. After touching a low of 15671 on March 8, the index went past 17000 to close at 17300, a rise of 10.4% in a matter of 7 trading sessions. With global cues continuing to be strong ,17600 could be seen in early part of next week where ideally some profit-taking should emerge.
BANK NIFTY-The index was also on a strong recovery mode. After touching a low of 32155 on March 8 it closed at 36428 for the week, a whopping 13% rise in 7 trading sessions! As it approaches the 200-dma of 36700, it could pause on some profit taking .35800-36000 should act as a good support level.
SCRIPS TO WATCH OUT
United Spirits (920) –The scrip saw a sharp bounce back from its 200-DMA around 800 and with short covering and delivery-based buying, gains could extend to levels of beyond 1000.Good support exists at around 880-890.Buying at declines could be considered.
Bharti (723)-The scrip has seen quite accumulation in the past few weeks and once it crosses 750, levels of all time high of 782 could be revisited. Gradual buying is considered to capture the expected momentum.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam