- A full-fledged trade deal and a stamp of approval from China for the deal is what the markets will be looking for on Monday. A lot of market euphoria has already been built into the indices over the trade truce, which is still uncertain.
- The early move towards BREXIT is likely to be a positive move for Tata Group companies like Tata Steel, Tata Motors, Tata Global and TCS. However the SNP with close to 50 seats could play a key role in BREXIT decision.
- FPIs were net buyers to the tune of Rs.116 crore while DFIs bought Rs.385 crore on Thursday. For the month till date, FIIs have sold nearly Rs.3800 crore worth of equities on the back of weakening growth impulses.
- Europe continued to be positive on the back of BREXIT even as Asia and the US remained tentative ahead of the actual trade deal. The SGX Nifty is also under pressure as it has rallied sharply in the last few days, despite weak macros.
- Coal India at Rs.196 could be the surprise package for long term investors. The company still offers solid profits and dividend yield and could be a divestment gainer over a period of time. Buy for target of Rs.230 in one quarter.
- The sharp rise in Brent Crude prices could put a halt to the spike in Asian Paints after a sharp rally in the last few months. The stock has rallied 40% since July and is likely to face pressure. Exit around Rs.1750 and re-enter around 1650.
- One can expect further pressure on Infosys on the latest class action suit initiated by Schall Law Firm. However, the case appears weak and one can use lower levels of around Rs.680 to buy into the stock for the long term.
- The WPI inflation data on Monday will be crucial as it will give a hint of the extent of price pressure that producers are facing.
