- A late rally in oil and gas stocks led to a bounce in the indices from lower levels. Most oil and gas stocks gained sharply after crude prices stayed strong and the BPCL case hinted at sharp undervaluation of stake sale.
- Yes Bank continues to be under pressure due to the impact of delays in capital raising by the company. The stock is already down 40% in the last one week and needs to shore up its core capital on an urgent basis. Trade with caution.
- FPIs were net buyers to the tune of Rs.605 crore while DFIs bought Rs.240 crore on Wednesday. FPIs have been sellers in the month of December over growth concerns and also over year-end reallocation of portfolios.
- Markets across the US and Europe closed in the positive on Wednesday on hopes of a trade truce and a Tory win in the UK elections. SGX Nifty is sharply in the positive and hints at the Nifty again breaching the 12,000 mark on the upside.
- With the recent undervaluation report coming on BPCL, one can look to buy the stock for around 15-20% upsides at current levels. There is apparently a huge mismatch between the offer price and the underlying value.
- Despite the sharp rally, Mannapuram Finance may be a good long bet at Rs.165 with upside targets of Rs.190 in the next one month. The Stable business model and strong gold prices are likely to help the stock move higher.
- We expect continued pressure on L&T as order books are likely to be impacted by delays in order flows from Andhra Pradesh and Maharashtra. Sell the stock around Rs.1275 for lower targets of Rs.1220 in 1 quarter from here.
- Key data points on inflation and IIP growth are expected to come out on Thursday and that will drive the trend of the market going ahead.
