Nifty holding above 17000 positive for index, may head to 17500; buy these stocks for gains By Rahul Shah Bulls returned to the party on Dalal Street after a long pause. We saw volatility during the previous week and finally closed just above the resistance level of Nifty at 17354. Equity benchmarks had a strong close to the year and welcomed 2022 with a bang. All-round performance in the sectors IT, Metals, Financials back into flavors. Going forwards Technically Nifty holding above 17000 should be a good sign which will form a strong base, Nifty has just crossed above the resistance level of 17350, now Nifty can move towards 17500 as the first target and 17777 as the second target. Select IT Metals and consumer companies can be the flavor of the week India’s narrative is quite strong this time both in terms of macros and India Inc’s fundamentals. The benefits accruing through government reforms such as PLI, National Monetization Pipeline, make in India will further catalyze growth. GST collections are near record highs, the shift to digital is adding transparency and consistency, leading to the biggest structural shift towards an organized way of doing business. The balance sheet of corporate India has been repaired and asset quality issues for banks. Continued initiatives by the government, evolving fundamental prospects, pickup in demand, and favorable sectoral tailwinds should hopefully lead to the Indian markets posting healthy returns in 2022 as well. Investors should look at long-term pictures rather than listen to the noise. Happy New year and Happy Investing TitanTarget: Rs 2670 | Stoploss: Rs 2480 Titan has given a breakout of the falling channel on the daily charts. It has formed a bullish candle on the daily scale with good volumes indicating buying interest. RSI Oscillator is also positively placed on the daily and weekly scale. Titan was among the top-performing stock on Friday Considering the current chart structure, we advise traders to buy titan with a target of 2670 with a stop loss of 2480. JSW SteelTarget: Rs 675 | Stoploss: Rs 643 Metals have been in focus in last week, after a long pause in the sector we saw momentum back into the sector. Among them we like JSW steel stock has given consolidation breakout, stock has strong support at 642, we believe the recent price surge in the metal sector, stock can outperform among the peers. One can buy with a stop loss of 643 targets of 675. (Rahul Shah is a Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.)
If the current trend continues for a longer period of time, not only oil mills but oilseeds growers will also not be able to get good rates of their produce, says Samir Shah, president of Gujarat State Edible Oils and Oil Seeds Association (GEOA). Shah who is also past president of SOMA says that due to various international factors rates of edible oils had gone up considerably, especially imported oils earlier this year.
“With a view to curb rising prices of edible oil, the Government of India reduced import duty on edible oils. Considering the fact that India is producing hardly 30 percent of its edible oil requirement, the decision was right at that point of time. Now when international prices of edible oils have gone down by 15 percent to 25 percent and high production period has started in edible oil exporting countries, the government should gradually increase import duty to protect local oil mills and oilseeds growers,” said Shah. GEOA has also made representation before Union Minister for Commerce & Consumer Affairs, Piyush Goyal to increase import duty.
In June import duty on edible oils was ranging from 35 to 55 percent, since then the government gradually reduced import duty and at present it is ranging from zero percent to 15 percent on different edible oils, he said.
Just a month back prices of edible oils were through the roof and the government took appropriate measures by reducing import duty in order to protect consumers, says Atul Chaturvedi, president of Solvent Extractors Association of India (SEA). “Prices of edible oils are coming down globally. Kharif sowing has already started across the country. In the interest of local farmers, it is high time to enhance import duty in a phased manner to encourage local edible oil value chain,” opined Chaturvedi.
On Thursday imported Palm oil prices were at around Rs 2100 per 15 kg as against local Rs 2700 and Rs 2550 of groundnut and cottonseed oils. Prices of other local oils including ricebran, coconut, soyabean and mustard remained as high as Rs 2350, Rs 2520, Rs 2500 and Rs 2580 respectively.
India imports around 13-13.5 million tonnes of edible oils, of which around 8-8.5 million tonnes (around 63 per cent) are palm oil. Though the price of other imported Sunflower oil remained at around Rs 2700 per 15 kg, but import quantity of the oil is much lower than that of palm oil.