- The stock markets are up against a data heavy week. The Fed meet outcome is expected this week as are key data points like IIP and CPI numbers. Markets will also react to the RBI status quo on rates in its latest monetary policy.
- One concern will be the FPI selling in the first week of December to the tune of nearly Rs.1700 crore in equities; a shift from last 3 months. This is likely to impact the short term direction of the markets from current levels.
- FPIs were net sellers to the tune of Rs.868 crore while DFIs bought Rs.211 crore on Friday. Sustained FPI selling has been on the back of weak GDP data and the IIP and CPI data points this week are likely to be crucial for the markets.
- Markets across the US and Europe saw a sharp rally in excess of 1% on Friday as hopes of an early trade deal and a UK Tory win buoyed the markets. Asia remains uncertain even as the SGX Nifty is flat in early trades on Monday.
- With SBI cards business getting lofty valuations, one can look at RBL Bank where the sizable value of the cards business is yet to be factored. Buy RBL Bank at Rs.338 for targets of Rs.385 in the next quarter time frame.
- With Britannia having corrected from higher levels, it gives a good opportunity to add at the current levels of Rs.3080. One can look to add positions from a 3 month perspective with a target of Rs.3450 on the up side.
- We had suggested a buy on Biocon at Rs.230 levels and investors can look to take profits off the table at Rs.285 levels. Investors can look to shift to Strides Pharma at Rs.375 for targets of Rs.435 in one quarter.
- The week is likely to remain cautious for the markets with too many data points up for grabs. Trade cautiously and stay light.
