- Markets could be range bound between the Nifty levels of 12,000 and 12,300 till the time there is greater clarity on the Chinese pandemic. The stimulus and the manufacturer support should be in their favour.
- Oil could be the interesting commodity in the coming days. The OPEC and Russia could be getting together to implement further cuts in supply and that is likely to keep the markets in an uncertain mood.
- FPIs were net buyers to the tune of Rs.705 crore while DFIs sold Rs.220 crore on Friday. FIIs have infused close to Rs.27,000 crore in the first 2 weeks of February with debt flows accounting for a bulk of the flows.
- Markets across the Europe and Asia were in the negative with the NASDAQ maintaining positive momentum. The SGX Nifty is also under pressure and the Chinese overhang will continue in the coming week too.
- We like Reddy Labs after the recent acquisition of a huge portfolio of drugs from Wockhardt. It is likely to give a boost to the domestic business of Reddy Labs. We suggest buying Reddy Labs at Rs.3320 for targets of Rs.3700 in 1 quarter.
- Keep an eye on Bharti Airtel as that looks the best poised to benefit from a likely duopoly in the telecom space. It is worthwhile buying the stock at around the Rs.563 levels for targets of Rs.630 in one quarter on the upside.
- We had first sold IndusInd Bank at around Rs.1275 and now reiterate our sell call at Rs.1185 for downside targets of Rs.1050 in one quarter. The bad loan problem could escalate if the telecom issue worsens in the days to come.
- The big event outcome for Monday will be the AGR order with specific focus on Bharti Airtel, Vodafone Idea and banks like HDFC Bank, Yes and IndusInd.
