WEEKLY TRENDSETTER (June 21,2024)
| 2024 | JUNE 7 | JUNE 14 | Ch % |
| NIFTY | 23290 | 23465 | 0.75 |
| BANK NIFTY | 49803 | 50002 | 0.40 |
| USD/INR | 83.42 | 83.56 | 0.17 |
MARKET REVIEW-It was a week of consolidation as the market paused after a stellar short covering rally post the election results. The broad-based market was however very strong with several mid-cap and small -caps posting strong gains.
INTERESTING CUES
Wipro is not only software -The company featuring prominently as a software major also has presence in the FMCG and lighting sectors with leading brands like Santoor,Yardley,etc .It clocked a revenue of Rs 10300 cr in FY24 out of which Santoor itself had a revenue of Rs 2700 cr. Rural demand has been subdued but the management sounds confidant as profits have seen a 22% growth .The commercial lighting business has also been growing at about 20%.This arm of businesses was demerged in in 2013 .It will be interesting to see if it is listing any time .
Petrol, diesel and ATF could be brought under GST-The long-awaited decision could see some discussion in the coming GST meet as the Govt looks to carry forward reforms. The issue is expected to see a reduction in the tax impact on the products. The maximum rate of tax under GST can be 50%, including cess. However, the rate of tax on petrol and diesel currently is over 60%. Thus, both Centre and States will take a hit on revenues. Meanwhile divestment of OMC s has been ruled out by the Petroleum Minister.
NIFTY – The index saw profit -booking at around 23500 levels though the closing looked encouraging and the coming week should see the resistance getting breached. Levels of 23700 should be seen while lower levels of 23200 should find support.
BANK NIFTY-The indexwas a relative underperformer during the week. However, the trend seems to suggest that levels of 49300 should ideally hold. Some profit taking mid-week around 50600 cannot be ruled out.
PICKS FOR THE WEEK
Engineers India (265)-After touching a high of 290 the stock corrected to below 200. However, the recovery has been swift and the stock now looks to surpass its previous high towards 300.Buying around 255-60 would be ideal.
GSFC (224)-The stock has not participated in the recent rally though the long-term trend is up. Buying at dips could be considered for a possible target of 250.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam