NIFTY PERILOUSLY CLOSE TO THE 10,000 MARK

  • The Nifty closed very close to the psychological level of 10,000 even as the cues coming in from the Dow and NASDAQ continued to be negative. Europe is still feeling the strain of the Italian issue.
  • Asian markets have been buoyant on Monday led by Hang Seng and the Nikkei. But the Indian market could face negative headwinds from the bigger story in the US and Europe. Higher levels may invite correction and selling.
  • FIIs were net sellers to the tune of Rs.(-1357) crores while DFIs bought Rs.1876 crore on Friday. FIIs have now sold more than Rs.36,000 crore in India in the month of October alone with a full year selling in excess of Rs.1 trillion.
  • The Dow, NASDAAQ and the European markets saw deep cuts during the day even as Asia has shown some signs of a pick-up. With risk-off selling across equities, Indian markets may find it hard to sustain in the positive territory.
  • One needs to be selective in buying NBFC stocks. Look to buy sound consumer businesses like Bajaj Finance but be cautious on HFCs where there is a risk of maturity mismatch. Bajaj Finance at Rs.2100 is a good bet with Rs.2500 target.
  • With the Kharif season over and the Rabi season also likely to benefit from higher MSP, the stock to watch out could he UPL. Buy at around 620 levels for quarterly targets of Rs.800 on the stock.
  • Those of you missed out the rally in D-Mart can start accumulating the stock at around the Rs.1220 levels for targets of Rs.1,500 in one quarter. The downside risks are quite limited from these levels.
  • Keep a watch for higher levels on the Nifty as the market still looks vulnerable. Focus on PMI, auto numbers and core sector this week.

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