WEEKLY TRENDSETTER (SEPT 24TH,2021)
| 2021 | SEPT 17 | SEPT 24 | Ch % |
| NIFTY | 17585 | 17853 | 1.52 |
| BANK NIFTY | 37812 | 37830 | 0.05 |
| USD/INR | 73.48 | 73.48 | -0.41 |
MARKET REVIEW–The markets mirrored global volatility as US markets as well as a default scare from a real estate major in China resulted in nervous sentiments. However, the undertone of the Indian markets continues to be bullish and thus recovery was also equally swift.
DID YOU KNOW
Zee gets a new Avatar
Last week the Zee share witnessed one of the most remarkable surges on a back of a proposed merger of Zee Entertainment Enterprises Ltd and Sony Pictures Networks. While both entities already have a bouquet of rich programmes for the Indian audience the game changer could be the sports segment as the combined entity could be making an aggressive bid for broadcast rights of the Indian Premier League (IPL) cricket tournament that is coming up for auction in December.
The merger deal will allow the two companies to achieve economies of scale in a rapidly changing media landscape marked by the rise of digital, say industry experts.
With this merger 3 strong players are set to dominate the entertainment and sports segments in the times to come. Along with this combine the other 2 players are Disney-owned Star India and Reliance-backed Viacom18.
The last few years have seen Zee struggling with falling revenue and profitability. The current merger could see a revival which would enable it to capture its full potential and restore investor confidence. The best is yet to come!
Uber looks to get into profit -making mode in the 3rd quarter
Covid was the most challenging for companies like Uber which had to contend with less booking from customers aggravated by drivers keeping away. However, the nimble footed major started food delivery business which boomed as orders surged from residents cooped up at home. Uber s rival Lyft posted profits in the June quarter 3 months ahead of its expected time.
MARKET OUTLOOK.
The Nifty has rallied 11% in the last 7 weeks from levels of 16000 and look overbought. A near term consolidation or correction could be seen as we enter monthly expiry. The index could find good support at levels of around 17300-400.Bank Nifty could see resumption of the uptrend after a relatively subdued but volatile week.
Some technical cues are as follows going by market trends
Scrips to watch out
Couple of technical set-ups are discussed with potential trades for the coming week: –
Zee Limited (319)-The stock has seen a 70 % surge this month after a huge underperformance in the last few months. While delivery volumes have surged, any cooling off could again see buying emerging. Near term support exists at around 300. The scrip could be accumulated for a possible target of 450-500 in the long term.
Exide Inds (180)-The scrip has seen a resurgence after being an underperformer in the last few months. After scaling past 200 the scrip is back to its support levels of 175-80 where buying could be considered for possible target of 225 in the short to medium term.
The economy is opening up and restrictions on travel are gradually getting relaxed. While the Covid 3rd wake still looms large one has to 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