- After gaining nearly 90 points on the policy day, the Nifty gained another 83 points to get close to the 10,800 mark. It is likely to meet stiff resistance at these levels and may come down before resuming its up move.
- Global steel prices are again buoyant and we are suggesting buying stocks like Tata Steel and SAIL. Both stand to gain around 25-30% from current levels in the next quarter. One can also look at JSW Steel.
- FIIs were net sellers to the tune of Rs.(-525) crores while DFIs bought Rs.1198 crore on Thursday. It looks like the FIIs are still not too convinced about reversing their risk off trade which took out nearly $4.5 billion last month.
- Markets across US and Europe were wary after the ECB indicated that the unwinding of the stimulus may happen sooner than expected. SGX Nifty is under pressure due to rate pressure at high levels.
- We again suggest to pick up Titan at lower levels around Rs.880. The stock looks poised to touch the Rs.1050 levels in the next 6 months. Apart from the Tata structuring, it is a solid play on consumer demand.
- Our top picks are still the FMCG picks of Hindustan Unilever, Britannia at current levels. Despite quoting at expensive valuations, they are still the best play on rising rural and urban income levels.
- Post the acquisition in Australia, Strides Labs looks a good bet at the current price of Rs.340. The stock has also corrected sharply and looks poised back to Rs.450 levels in the next 6 months.
- Nifty may have to be cautious at higher levels. The focus should be on steel and on consumer goods companies for now.
