- The Nifty maintained its upside momentum on Monday settling over the 10,500 mark as short covering continued in the market. Pharma stocks and some IT stocks benefited from the weak rupee.
- The INR continued to be under pressure as oil prices rallied beyond the $81/bbl mark. The latest feud between the US and Saudi Arabia over sanctions has raised the spectre of oil shortages one again, although it looks unreal.
- FIIs were net buyers to the tune of Rs.65 crores while DFIs bought Rs.295 crore on Monday. While FII buying was quite insignificant, the good news was that FII selling had stalled for the first time in the month of October.
- The Dow Jones and the NASDAQ were under pressure on the emerging tiff with Saudi Arabia even as Europe and Asia showed signs of strength. The SGX Nifty is in uncertain zone and may be largely range bound on Tuesday.
- Yes Bank may have bounced sharply from lower levels but even at around Rs.230 it continues to be a good bet considering that the management challenges are finally likely to be resolved. Target Rs.300 on the stock in one quarter.
- Our top mid cap pick in the pharma space remains Strides Pharma around the Rs.430 levels with its strong generics focus in the Australian market. We have a target of Rs.550 for the stock in one quarter.
- IndusInd Bank may show a weak start on the back of numbers but one can look to accumulate the stock around the Rs.1,600 levels for targets of Rs.1,900 in one quarter as the IL&FS losses are now fully written off.
- Markets are likely to be lacklustre to begin with and may take shape based on how the US-Saudi Arabia stand-off takes shape during the day.
