India Market Wrap 2nd July 2023

This week's market action in less than 5 mins!

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🌯 Market Breadth and Health: Gain a comprehensive understanding of market dynamics and trends

🌯 Insider Trading Activity: Uncover the moves made by industry insiders

🌯 Special Situations & Important Corporate Announcements: Discover exclusive highlights from this week’s noteworthy corporate announcements

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TheWrap #001

This weeks market action in one line

Nifty made a new all time high, large caps rule, broader market consolidates.

Market Breadth as of 2nd July 2023

The market made its bottom on March 28th, and since then, there has been a rapid rally across all market caps.

The chart above illustrates the number of stocks trading above their 40-week exponential moving average. Currently, this measure is nearing its peak.

We were close to the bottom just 12 weeks ago - that’s how swift this rally has been!

Industry Wise Breadth of Strong Stocks

Stocks within banking as well as auto sector continue to do well, while pharma seems to be gaining traction.

Within banking sector - NBFCs are showcasing strength and new sub-sectors within autos like tyre and battery companies are picking up momentum.

Some examples below:

Exide Industries

Moving past prices last seen in Jan 2019

JK Tyres

New Lifetime Highs

Within pharma, it is the branded generics and hospitals that are in the limelight.

Other interesting sectors include market related financial stocks like Asset Management Companies, Rating Agencies (ICRA, CRISIL) and milk companies!

Here is a chart of Parag Milk Foods

High Volumes, Near Resistance

In total, there are 427 stocks that are showcasing strength. This determination is based on my spending many hours manually screening over 2,000 charts.

Here is a link to all 427 stocks, you’re welcome - please share our newsletter!

Here are this week’s important insider trades.

Buying

1. Praxis Home Retail: Promoter buying of ~19cr representing about 11% of the company

2. JayKay Enterprises: Promoter buying of ~39cr representing about 10.6% of the company

3. Parag Milk Foods: Promoter buying of ~55cr representing about 3.2% of the company

Selling

1. Easy Trip Planners: Promoters sold about ~400cr worth of shares this week representing about ~5.68% of the total current market cap. This is in addition to the ~266cr sold by them earlier last week.

   Here are promoters comments about his stake sale. Pretty vague statements, read into that what you will.

2. Rolex Rings: Bunch of promoters within the company sold about ~135cr worth of stake at current valuations, representing about ~2.23% of the total market cap.

Unfortunately, there weren't many significant corporate announcements or new special situations to highlight in the past week.

However, one spin-off that has caught my interest and that I am closely following is Sanofi's demerger of its consumer healthcare business.

This particular business segment is known for its high margins and customer loyalty, and it includes valuable consumer pharmaceutical brand names such as Allegra and Combiflam.

Here is the link to the spin-off announcement.

1. CellPoint - A retail chain focused on cell phones

2. Aatmaj Healthcare - Small hospital chain

3. Cosmic CRF Ltd - Railway Ancillary

That was 5 mins!

Here are my write ups on two of the current strong stocks - Dreamfolks and CMS Info Systems.

The Business of CMS Info Systems 🏦

The Business of Dreamfolks ✈️

Go enjoy the rest of your weekend, see you next Sunday!

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Did you like today’s issue (or hated it?). Leave a comment and let me know!

Peace ✌️
Tar

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