- Stock markets are likely to take support from the Ayodhya verdict over the weekend with markets expected to show positive moves on the back of greater certainty. However, the Maharashtra outcome will hold the key.
- The latest Nomura estimates that GDP growth in the second quarter could dip to 4.2% and for the full year to 4.9% will be a major concern for the markets as a whole. This could result in a temporary top for the markets.
- FPIs were net buyers to the tune of Rs.932 crore while DFIs sold Rs.585 crore on Friday. FPIs have infused close to Rs.12,000 crore in the month of November first week and the contributions have been equal from equity and debt.
- Markets have been flat to negative with only the US markets staying in the positive territory. The Indian SGX Nifty has been also trading in the negative after the outlook downgrade, although the Ayodhya verdict should be favour markets.
- Pharma could be a sector to look forward to considering that the front line stocks like Sun and Lupin have still maintained their operating margins above the 20% mark. One can play Sun Pharma, IPCA Labs and Cipla for 15-20% upsides.
- One can again start to sell Zee around the Rs.290 levels as the stake selling in the market is likely to come from VTB of Russia and other mutual funds. One can target Rs.250 and Rs.230 on the downside on the stock.
- After the recent correction from higher levels, Berger Paints could be a good bet on the FMCG space. With its focus on decoratives and on home solutions, one can look to target around Rs.550 on Berger in the next 3 months.
- There have been concerns over troubles in some banks in Europe. Traders are advised to stay light ahead of trading holiday on Tuesday.
