- Markets across the world were weak on Monday and the Nifty also lost nearly 100 points to touch the 10,660 levels. The Nifty has lost nearly 350 points from the recent peak in a span of just 3 days.
- With the Dow Jones losing nearly 2200 points in the last 6 trading sessions, the inversion of the US yield curve really appears to be spooking markets. The pressure of global weakness will continue in the Indian markets as it resumes on Wed.
- FIIs were net sellers to the tune of Rs.(-577) crores while DFIs bought Rs.186 crore on Monday. Globally, there is a clear shift towards risk-off buying with global investors shunning equity investing and shifting to safer debt.
- There was virtual carnage in global markets on Monday with the US markets correcting over 2% and the Nikken correcting over 5%. The pressure on the SGX Nifty is also likely to continue through the last week.
- Ahead of a dull weak, we suggest investors to hedge their long equity positions by purchasing Nifty 10,500 put options in the January series. The real risk is only if the Nifty breaches the 10,500 mark decisively in the downside.
- We have been pushing Dewan Housing from lower levels and we still find value in the stock at the 235-240 levels. One can buy this stock with a price target of Rs.320 in the next one quarter as they set their balance sheet in order.
- Among the oil service companies, Selan Exploration is a good bet at the price of Rs.175 and has upside targets of Rs.225 in one quarter. The company is also reasonably priced in P/E terms, valued at just around 6.2X.
- It is best to stay light on the markets for the last week of the month with the pressure on the markets likely to stay intact.
