- The Nifty was up by 47 points and the Sensex was up by 186 points on a day when the Nifty closed above 10,900 and the A/D ratio was favourable. We maintain our first Nifty target of 11,000 being breached in January.
- The RBI has been making the right noises about making liquidity available and aiding the stressed MSME sector. The news is likely to be positive especially for the PCA banks as they will have less to worry. Positive on Corporation Bank.
- FIIs were net sellers to the tune of Rs.(-48) crores while DFIs 143 crore on Tuesday. The first day of the year is holiday season in most countries and FPI figure may be really not meaningful. Clearer picture will emerge from 2nd week.
- With most markets in Europe and the US shut on 01st Jan, a clearer picture on global cues will only emerge on Wednesday. Asia is in positive territory on hopes that the trade war between the US and China should see a resolution.
- We stay positive on SBI as the big pick for the year. We have a target of Rs.360 on the stock as the stock is likely to recover from NPA cycle bottoming as well as a chunk of the Rs.1 trillion coming back as recoveries from the NCLT.
- With the steel stocks continuing to expand capacity and a rapidly expanding market, we see JSW Steel as a good stock to accumulate around the Rs.305 levels with a target of Rs.350 in one quarter time frame.
- We like BOB as a strong buy at the current market price of Rs.120-122 for upside targets of Rs.160 in 2 quarters. BOB is likely to benefit from the mega merger synergies and also from the NCLT recoveries.
- While we expect the 11,000 level to be breached during the month of January, we do suggest caution at higher levels as global cues are still uncertain.
