WEEKLY TRENDSETTER (JULY 16th ,2021)
| 2021 | JULY 9 | JULY 16 | Ch % |
| NIFTY | 15690 | 15923 | 1.49 |
| BANK NIFTY | 35072 | 35751 | 1.94 |
| USD/INR | 74.49 | 74.61 | 0.16 |
MARKET REVIEW –Despite a short hiccup in the beginning of the week, the Nifty regained lost ground and marched ahead. Bank Nifty did slightly better and sector-wise there was broad based participation .IT was the star of the week with several stellar numbers provided for the June quarter.
DID YOU KNOW?
IL&FS expects to recover 58,000 cr by March 2022
The default syndrome began with IL&FS in 2018 which led to a huge meltdown in banks. To stem the crisis a panel was set up under Uday Kotak and find a possible solution. Last week as per a presentation by IL&FS it expects to address 58,000 cr or 95 % of its estimated debt recovery target by March 2022. In April this year, the group had revised its estimates for aggregate debt recovery to 61,000 cr beyond September 2021. The group’s overall debt stood at 99,000 cr, as of October 2018.A significant portion or 50,000 cr of estimated recovery will be addressed by September 2021.Thus PSU banking space could well be in focus in the next 2 quarters.
MARKET OUTLOOK.
1.The week begins with a SC hearing on the petition filed by aggrieved telcos on AGR calculation. The outcome will have impact not only on telcos particularly VI which is battling for survival but also on banks which have lent to the sector and recoveries remain a matter of concern if the present situation continues.
2.The June quarter results has begun with a bang with likes of INFY, Wipro, L&T twins, Cyient, Mindtree all providing stellar June quarter numbers. The coming week will see a slew of results like ACC, Bajaj Finance, Asian Paints, etc. Some interesting ones which can be tracked are Alok Inds (July 19), Astron Paper (July 19), Jubiliant Ingrevia (July 20), ICICI Securities (July 20), Tanla Platform (July 21), Kesoram Inds (July 21), South Indian Bank (July 22), India Mart (July 22), India Pesticides (July 22), Fineotex Chem (July 23), etc.
3.After a 4 -day run up the Nifty may pause with some profit -taking as global cues are negative with US markets down on Friday. However, with life-time high of 15962 being touched, downside could be limited to 15800 on Nifty. Results will again be critical for sustenance of the sharp rally in many scrips. 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.
Some technical cues are as follows going by market trends
Scrips to watch out
The mid-cap and small-cap rally have been breathtaking in the last 18 months. However, some caution also needs to be exercised. Several stocks have risen sharply and look overbought. Investors should not get carried away by chasing many of these. Trade but also exercise caution. Following scrips look promising with a small to medium term horizon.
CEAT (1450)-After touching a high of 1763, the scrip has cooled off and even touched a low of 1315. Decent accumulation has been seen in the 1315-1400 band and the scrip is poised to resume its uptrend. Accumulation could be considered for levels of 1700 and above.
Cummins (857)-The scrip has seen huge buying volumes at lower levels and looks poised again to retest its recent high of 933. Levels of 975-1000 could be expected.
There is still a lingering fear that the 3rd wave of Covid could be round the corner. Optimism is however prevalent going by crowded tourist spots. Stay positive but take precautions as well so that we live to see better times!
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam