NIFTY SCALES ABOVE THE 10,600 MARK

  • The Nifty scaled the 10,600 mark on Friday on the back of sustained buying by domestic funds despite selling from foreign investors. The market is likely to sustain above 10,500 levels for now
  • Downstream oil may actually outperform from here on with the government promising to impose a cess on ONGC and pass on hikes to the customer. Pick IOCL, HPCL and BPCL at current levels.
  • FIIs were net sellers to the tune of Rs.(-768) crores while DFIs bought Rs.888 crore on Friday. FIIs have pulled out close to $4 billion from equity and debt since the beginning of the month of May.
  • The markets are likely to be buoyed by the 5% crash in the price of crude oil after the US pulled up the OPEC to infuse more supply. Markets are likely to be positive across the world on Monday including the SGX Nifty.
  • This is the right time to create a safe NBFC portfolio which has limited downside risk a sharp upside potential. A portfolio combining Bajaj Finance and Indiabulls Housing Finance may be par for the course.
  • Yes Bank may be the most reasonably valued private banks especially considering its stellar results in the last quarter. Suggest buying the stock for targets of above Rs.400 in the short term.
  • Among the technology stocks, Tech Mahindra may be best poised to capitalize on the weaker rupee. Despite the rally in the last one year, we like the stock at around Rs.700 with targets of Rs.800-820 in 1 quarter.
  • While the momentum is favouring a market upside, we still believe that it is better to stay hedged in positions.

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