- The outcome of the drone attacks on Iran and the attacks on US bases in Kenya by the Al Shadaab will determine the course of oil prices and of the market overall. Markets could remain under pressure on Monday.
- It looks like the Tata Mistry case could be solved amicably as Mistry has already indicated that he would not be interested in returning as the chairman of Tata Sons. Now the only bone of contention is a board seat for Mistry.
- FPIs were net buyers to the tune of Rs.1263 crore while DFIs sold Rs.1029 crore on Friday. FIIs have been selling in debt as they see the rupee weakening in the light of the spike in oil prices post the drone attacks.
- US markets did come under some pressure on Friday after the drone attacks. In fact most of Asia is under pressure on 06th January due to the impact of the attacks. Even the SGX Nifty is under pressure in early trades.
- Traders can look to buy Sun TV at around the Rs.430 mark for targets Rs.500. The stock is likely to attract attention in the media space due to its strong DTH and network franchise and also due to the troubles at Zee.
- It is time to be cautious on downstream oil companies like BPCL and HPCL as they could be the worst hit on account of the spike in oil prices. OMCs also run the risk of taking part of the subsidies if oil prices keep moving higher.
- Our clear favourite ahead off the numbers and in the light of the rupee weakness is Infosys at the current price of Rs.744. One can look to buy this stock at these levels for upside targets of Rs.850 in one quarter.
- The big story will be the geopolitical situation with the scenario in Middle East and Africa worsening substantially in the last few days.
