- The Nifty got closer to the 11,000 marks on Monday after hopes that China would further stimulate its economy. China had recently reported its full-year growth at 6.4%, the lowest level in the last 22 years.
- At Davos, the IMF has underlined that India could be the sole large economy to grow at above 7.5%. However, the IMF also downgraded global growth lower by 20 bps for the next 2 years. That could dampen sentiments.
- FIIs were net sellers to the tune of Rs. (-300) crores while DFIs bought Rs.521 crore on Monday. It remains to be seen how the FIIs actually react to the China stimulus news and the recent IMF pronouncements on the Indian economy.
- Even as the NASDAQ was in positive territory, the markets across Europe and Asia were in flat to negative territory. The SGX Nifty is also flat with a negative bias but the Nifty could attempt getting closer to 11,000 this week.
- We had given a buy call on RIL ahead of results at Rs.1140 and would suggest adding more of the stock at around 1180 levels. We target a price of Rs.1300 on the stock in the next quarter.
- A stock that has corrected sharply in the last few months is HUDCO and at Rs.45, it offers a compelling play on the low-cost housing segment and we suggest buying the stock with a 6-month target of Rs.70.
- With Yes Bank likely to announce its new CEO soon, the stock may be a good pick at Rs.190. We still target the stock to touch Rs.250 in the next one quarter with longer-term targets of Rs.350 in a year.
- The immediate challenge, as we have seen in the past, is for the Nifty scale past the 11,000 marks. Any rally will depend on the break out with volumes.
