- The Nifty closed very near to the 10,700 mark driven largely by the pharma and the oil & gas sector. The sharp $5 fall in Brent Crude helped most oil downstream companies to stage a smart recovery in the last two trading sessions.
- While we stay cautious on pharma, we believe that oil could be a good play, especially the downstream sector. With oil prices likely to go lower and subsidy not really an issue, we suggest buying into HPCL, BPCL and IOCL.
- FIIs were net sellers to the tune of Rs.(-795) crores while DFIs bought Rs.1018 crore on Monday. The markets are still being protected by domestic buying, largely on the back of relentless equity flows.
- World markets have been largely mixed with Europe under pressure and Asia in the positive. SGX Nifty is under pressure but we expect the uptrend in the Indian markets to continue till around 10,800 levels.
- With the near resolution of Binani case after Bhushan, it could be good news for the PSU banking stocks. We suggest buying stocks like PNB, BOB and BOI at current levels for 25% upside from current levels.
- 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.
- With the sharp fall in Manpasand Beverages, investors need to be cautious about auditor movements. This is likely to become a big issue in the light of the SEBI tightening is regulation around the auditors.
- The market appears to have more legs to move up and we may face resistance on the Nifty only around the 10,800 mark.
