WEEKLY TRENDSETTER (OCT 20TH ,2023
| 2023 | Oct 6 | Oct 13 | Ch % |
| NIFTY | 19653 | 19751 | +0.50 |
| BANK NIFTY | 44360 | 44287 | -0.16 |
| USD/INR | 83.10 | 83.42 | 0.39 |
MARKET REVIEW–The market opened for the week with a gap down in the wake of tension in S.E. Asia. However,” buy at dip” was a norm for the whole week as even on Friday the market recovered after a sharp gap down. The pattern could continue in the near term.
Interesting cues
SOLAR CELLS EXPORTS SURGE
The April -June 23 quarter has seen exports jump 10 times to $629 mn as against just $54 mn in the corresponding previous period. This has come in the wake of US keeping away imports from China and a 40% customs duty imposed on imports under the PLI scheme. However, in the long run the solar cells would be critical to meeting domestic demand as well which is soaring fast.
Royalty for mining critical minerals fixed at 3%
The royalty for mining critical minerals like lithium, niobium and rare earth elements has been fixed. While lithium will use LME prices as a reference, niobium will use the average selling price as reference while rare earth elements will attract 1% royalty on the average selling price. Lithium is a key component in the manufacture of rechargeable batteries used in mobiles, laptops, EVs, medical devices and energy storage solutions. Conversely niobium is used in jet engines and rockets, beams and girders for buildings and oil rigs and oil pipelines. Lithium -ion import bill was Rs 23171 cr in FY22-23. The Govt is looking to reduce imports with these decisions. Mining companies like GMDC have reacted sharply to this announcement with the stock price doubling in 3 months. Other companies like NMDC and Coal India have also seen momentum. All these mining companies are hugely cash rich and poised to take advantage of this opportunity.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index faced resistance around 19850 for the week and could see it oscillating between 19550-19850 for some time. The banking pack could prove decisive as results start pouring and to begin with HDFC Bank to which market will react on opening next week.
BANK NIFTY-The index bounced off from lower levels of around 43800 but corrected from 44700 before closing just below 44300. HDFC Bank could decide the trend of the index to begin with next week. The range of 43800-44700 could be critical and a breakout on either side could be sharp.
PICKS FOR THE WEEK-
Jindal Saw (361) –The stock touched a life time high of 390 in Sept and after a correction to 330 has resumed its uptrend. A modest target of 385-390 could be expected.
Bajaj Hind (25.85) -The stock has seen a correction from 30 to 25 and now again looks ready to resume the uptrend. Accumulation could be done and levels past 30 could be expected in the next few weeks.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam