- Nifty bounced back nearly 500 points last week and settled close to the 10,600 level as the low crude oil prices led to a relatively stronger rupee and buoyancy in stock markets. Buoyancy is likely to continue in markets.
- The big data points this week will be the IIP number and the CPI number. Both are expected to be subdued. The rupee will also be a key factor and is likely to further strengthen with weak oil. Tata Steel results will be keenly watched.
- FIIs were net buyers to the tune of Rs.614 crores while DFIs sold Rs. (-337) crore on Friday. After selling $6 billion in Indian markets in October, FPIs have bought nearly Rs.4800 crore of debt and equity in the first 5 trading days.
- Most markets across the US, Europe, and Asia were a week on Friday. However, the market may look to face some weakness with the SGX Nifty also in negative territory. Indian markets start on Monday after a long weekend.
- With Iran sanctions looming, India may end up making rupee payments to Iran for the imported oil. This will be positive for IOCL as it saves them substantial foreign currency risk. Trade long on IOCL for 25% upsides from current levels.
- It may be the right time to start picking up Yes Bank which is almost 50% below its peak price. The IL&FS effect may not really hurt and this may also give an opportunity to buy DCHL at current prices. Look for 30% upsides on both stocks.
- After the sharp 30% correction from higher levels, Adani Ports and SEZ is a good buy around the Rs.335 mark for targets of Rs.400 in the next one quarter. Mundra port traffic is still likely to see record volumes.
- The undertone of the market may remain strong but a lot will predicate on the data flows in CPI and IIP as well as rupee movement.
