WEEKLY TRENDSETTER (MARCH 15,2024)
| 2024 | MAR 2 | MAR 8 | Ch % |
| NIFTY | 22378 | 22493 | 0.51 |
| BANK NIFTY | 47297 | 47835 | 1.14 |
| USD/INR | 82.83 | 82.74 | -0.11 |
MARKET REVIEW-The week saw both the indices closing in the green despite a dip mid-week. However, profit taking continued in the mid cap and small cap segments and with action against leading NBFC s on lending against gold and shares, the mood looked circumspect and could possibly continue.
INTERESTING CUES
Travel industry expected to show double digit growth in FY25
The revenge tourism which began post Covid has accelerated over the past few months. Hybrid work set up and a growing middle class income position and rising disposable income all auger well for the travel binge to continue. Domestically also with substantial infra development in railways, roads and airports, India has the potential to be a top tourist destination.
Rupee strengthening against dollar-With interest rate cuts looming in the US, strengthening inflows to Indian equity markets, crude looking sluggish despite geo political tensions as well as the Indian Govt ‘s experiments to substitute dollar with rupee payments, the trend could well continue in the current year. The rupee has already breached the 200-dma on the downside and barring any unexpected event, the trend could continue.
Tata Motor demerger plan-The company plans to demerge PV and CV into 2 different entities. More potentially the demerger could pave the way for listing the EV business. The JLR arm still dominates with 69% revenue and 78% EBIDTA contribution in the overall context. The CV arm is likely to benefit from the infra thrust, focus on improving public mobility and replacement cycle on the horizon.
TVS Supply Chain adds 6.5 lac sq foot of warehousing space in Hosur-With this addition the total warehousing capacity has increased from 21.2 mn sq ft to 21.65 sq ft. The company has positioned this facility for global parts distribution. Globally the company operates around 300 warehouses across 5 continents. With the company well entrenched in auto parts, electronic parts and ofcourse 2-wheeler, this consolidation phase of the company augers well for the long run.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index held on well and closed just below 22500 for the week though it did dip to a low of 22250 for the week. Private banking stocks, metals, capital goods kept the index in the positive. For the coming week 22750 could be the next target.
BANK NIFTY-The index showed a steady trend and managed to cross 48000 before slipping back. There could be an attempt next week to go past the all-time high of 48600 as the mood looks positive.
PICKS FOR THE WEEK
PNB (129.80)-The stock has been on a consolidation phase and looks poised for a strong breakout past 133.Buying could be considered around 126-27 for a possible target of 138
Exide (330)-After touching life time high of 354 the stock went into a correction mode. Buying could be considered for a possible target of 345.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam