- The Nifty closed last week on a crucial level just above the 10,200 mark. The range of 10,200 to 10,300 will be critical and it needs to hold above that level for the up move to sustain. Otherwise, testing of levels below 10,000 on Nifty will open up.
- The forthcoming week is likely to be data heavy with the inflation and the IIP numbers coming out. The inflation will be watched after the mild fall in the previous month. IIP needs to move higher to sustain higher GDP in Q4.
- FIIs were net buyers to the tune of Rs.551 crores while DFIs sold Rs.(-65) crore on Friday. FIIs have already sold over Rs.6000 crore in March and the Fed meet will be critical in driving future flows into EMs like India.
- The sharp rise in technology stocks took the NASDAQ to all-time highs and that led to a tech driven rally in the SGX Nifty. The SGX Nifty is already quoting over 140 points higher in early trades on Monday.
- The NCLT approval for the merger of Bharti Airtel and Telenor will be a boost for Bharti Airtel at a time when consolidation is the name of the game. At Rs.403, the downside risk is limited and one can target Rs.450 on the stock.
- Momentum appears to be favouring Tech Mahindra and a good momentum bet at Rs.620. One can look at targets of Rs.700 on the stock in 1 quarter ahead. Stock looks well poised for the digital shift.
- Reliance Industries at around Rs.910 may be a good long term bet, especially considering that it is likely to outperform in the fourth quarter on GRMs, petchem margins and the Reliance Jio business. Target Rs.1100 in the next 1 quarter.
- The coming week could be critical and one must look out for a decisive break above 10,300 before buying. IIP and inflation could hold the key.
