Markets for the week extended gains for the sixth straight week with Sensex posting gains of 3.5% on back of strength emerging in Service Sector Index. The Breakout in Nifty Service Sector Index which holds 53% weight in Nifty 50 index provides key trigger for further extension of rally. At present, Sensex on weekly chart has posted third degree negative divergence as Sensex approaches weekly resistance line of 70,400. We expect significant gains to emerge from Nifty Service Sector related stocks in near term with maximum upside potential seen at 15% in Nifty Service Index as a whole. On the downside, for Sensex 68,400 should act as crucial support on weekly basis to confirm trend reversal.
Sensex 30 Chart
Stocks to watch
Positive Read through
- Τata Motors – To increase price of its commercial vehicles up to 3 pct from January 1, 2024.
- Mazagon – Bags order worth Rs, 11.45 bn from ONGC.
- PSP Projects – Lowest bidder for a project worth Rs 2.96 bn.
- Subros – Bags Rs 250 mn order from Railways for ACs, govt makes AC cabins mandatory.
- GMR Airports – GQG buys 1.67 pct stake via block, tariff hike announcec at Goa Airport.
- GMR Power – Mint rpts, in talks w/Infra Focussed & Sovereign Wealth funds to Raise Rs 8.33 bn.
- Lloyds Metals – To expand ron ore capacity up to 55 MTPA, overall capex at Rs 258 bn.
- Max Healthcare – Company acquires Starlit Medical Centre for Rs 9.40 bn.
- Jute Co’s – Cabinet approves reservation norms for Jute Packaging Materials for Jute Year 2023-24.
- HCL Tech – Company expands footprint in Romania with delivery centre.
- Blue Dart – Company approves purchase of 2 leased aircraft from DLH Aviation for Rs 400 mn.
- IREDA: Launches Retail Division to target PM-KUSUM, Rooftop Solar & Other B2C Segments.
- TVS Motors – Unveils Aapche RTR 160 4V With Control Through Dual Channel ABS.
Negative Read through
- Wipro – Stephanie Trautman resigns as chief growth officer w.E.F. January 31, 2024.
- Dr Reddy’s – Antique says, US FDA observations for Bachupally unit can lead to warning letter.
- Cipla – Arm voluntarily recalls one lot of seizure drug Vigabatrin.
- Neuland labs – Promoter sells 3.12 pct stake via open market at an avg price of Rs 5,012.40/sh.
- Medplus – Arm gets notice from Drugs & Control Authority on violation of licence conditions.
- Pricol – PHI capital sold 2.5 pct stake via block, Goldman Sachs top buyer.
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