- Markets enter a data heavy week as key results like TCS, HDFC Bank and RIL are expected to be announced this week. Also, the budget expectations are likely to be built into the markets in a big way this week.
- Metal stocks could see positive action if the trade deal Phase 1 goes through on the 15th of January between China and the US. It is likely to be backed by a Chinese stimulus which will be positive for most metal and mineral companies.
- FPIs were net buyers to the tune of Rs.578 crore while DFIs sold Rs.252 crore on Friday. The FPIs have been selling quite aggressively on the back of weak signals coming from the oil market and the dollar / rupee market.
- Markets across the US and Europe closed in the negative on Friday but most of Asia have been in the positive on hopes of a trade deal. The SGX Nifty is also marginally in the positive and a lot will depend on data cues.
- Traders can look to start picking Infosys at around the range of 725-735 as two trends are favorable. Apart from the strong guidance, the stock is also likely to benefit from the internal audit clearance of whistleblower allegations.
- RIL could be an interesting play ahead of its quarterly results this week. The market is betting on a $10.5/bbl gross refining margin (GRM) and anything more will be a boost. Look to buy RIL around 1540 for targets of Rs.1650.
- Look to accumulate Hindustan Zinc around Rs.219 for targets of Rs.240 as the stock is likely to benefit if the trade deal goes through and another Chinese stimulus is on the anvil. Also it is a good dividend yield play.
- Focus would largely remain on the quarterly results and the emerging situation in Iran, which has been strangely silent for close to week now.
