- The Nifty faced pressure closer to the 11,000 mark and closed around the 10,950 mark as the Fed rate hike put some pressure on the stock markets. Also traders were being cautious ahead of the year-end holiday season.
- Ahead of the Christmas holiday season, we suggest trader to remain light on the market as yearend volatility could result in selling. While not much damage is expected to the investment portfolios, trades are best kept light.
- FIIs were net sellers to the tune of Rs.(-386) crores while DFIs bought Rs.88 crore on Thursday. Overall volumes in the market were quite thin considering that this was the last full trading week ahead of the yearend.
- European markets reacted negatively to the rate hike by the Fed even as the Nikken corrected close to 3% on Thursday. The SGX continues to trade in positive territory and will look to breach 11,000 decisively on Friday.
- Long term investors may look to buy Tata Motors from a 1 year perspective as the concerns over BREXIT are largely factored into the prices. Also, Chinese demand is likely to pick up in the next year. One can look at a target of Rs.220 on TAMO.
- Traders can look to buy IDFC First Bank at around Rs.42 for medium term targets of Rs.60 and 65 on the stock. The merger will also bring in a new management under Vaidyanathan and that is likely to bring aggression to the bank.
- With the massive capitalization of banks and a push to NCLT, look to buy SBI at the current market price of Rs.290 with targets of Rs.330 in one quarter. It could be big beneficiary from the banking boost in the coming year.
- With the crude price at 17 month lows, markets may be poised to get beyond 11,000. We suggest being cautious in the last week of the year.
