- The markets are likely to be driven by a mix of global and domestic cues in the coming week. The impeachment motion against the US president will continue to hold the attention of the markets at a macro level.
- At a more micro level, the focus will be on the RBI policy to be announced on October 04th. The broad estimate is that of a 25 bps cut in rates but anything more than that will be a positive bonus for the markets.
- FPIs were net sellers to the tune of Rs.214 crore while DFIs bought Rs.459 crore on Friday. Overall FPIs have been net buyers for September and that should be a marked shift from the previous months’ data flows.
- UK was one of the few markets to remain strong in the last few days after the UK Supreme Court struck down the suspension of parliament. Now BREXIT will most likely get postponed. SGX Nifty is trading in the negative territory.
- With Aramco reverting to full production, we see oil prices settling lower. This is likely to be positive for downstream oil companies such as IOCL and BPCL could see nearly 10-15% upsides from current levels. Trade accordingly.
- We had recommended Vedanta on Friday at higher levels and reiterate our call on Vedanta at Rs.156 with targets of Rs.200 in one quarter. A revival in Chinese stimulus is expected to be positive for this stock.
- We continue to remain negative on Zee Entertainment and suggest adding to shorts on the counter targets of Rs.245 on the downside. The stock is likely to remain under pressure after SEBI warned on standstill agreements.
- Markets could be largely tepid during the first half as Wednesday happens to be a trading holiday as markets await MPC cues.
