- After a 6-day rally in the stock markets, one can expect some profit booking on Friday considering that the next week will also be the festival week for the Indian markets. Longs are likely to cover ahead of festive season.
- We continued to stay negative on aluminium stocks have turned our calls in Vedanta and Hindalco to negative after ALCOA gave a weak outlook and opted to well assets worth $1 billion. Short term outlook will be negative.
- FPIs were net buyers to the tune of Rs.1159 crore while DFIs sold Rs.512 crore on Thursday. Interestingly, FIIs have been infusing funds consistently into Indian equities over the last one week despite a weaker currency.
- Markets across the world have been slightly ambivalent about the outcome of the BREXIT deal with EU markets in the negative. Indian SGX Nifty is trading in the negative but that could be more due to weekend pressures.
- One can look to accumulate Tata Motors in the Rs.140-145 range from a medium term perspective as the BREXIT deal would give a lot more clarity to the future of JLR. One can target a price of Rs.200 in one quarter on this stock.
- Zee results were a big disappointment with the Rs.171 crore write off on its group loans raising serious issues of corporate governance. One can look to sell the stock around Rs.260 for downside targets of Rs.225 in on month time frame.
- With its huge exposure to the European market, Motherson Sumi could be another beneficiary of the BREXIT deal. One can look to buy the stock around the Rs.110 levels for targets of Rs.150 in one quarter.
- Expect the normal weekend pressures to play out on stocks although the BREXIT deal will continue to be positive for sentiments in the coming week.
