- On Wednesday, the Sensex scaled the 40,000 mark but the Nifty stopped short of the 12,000 mark. That could be the next target this week and that would underline that the breakout above the levels is real and credible.
- The Fed rate cut should work in favour of Indian markets as it paves the way for another rate cut by the RBI when it meets again in the month of December. This should be value accretive for rate sensitive stocks in the future.
- FPIs were net buyers to the tune of Rs.7192 crore while DFIs sold Rs.186 crore on Wednesday. FPI buying included Rs.6000 crore of block buying in HDFC Life but even outside of that they had infused closed to Rs.1200 crore on Wednesday.
- US markets gained after Jerome Powell indicated that that the Fed may pause on rates after the third rate cut in last 3 years unless growth warranted. This gave some relief markets and the indices bounced back across the US and Asia.
- We reiterate our strong buy call on Tata Steel which with 25% upside from current levels. Apart from the liberalization of the captive mining lease policy, steel could also be a big gainer from the China stimulus that is expected very shortly.
- We reiterate our Buy call on SBI and suggest adding more of the stock at the level of around Rs.290 for first target of Rs.330 and Then Rs.360 in one quarter. Likely to benefit from lower NPAs and also from SOTP valuations.
- Traders should look at unwinding positions in ICICI Bank and stay light as the bank has shown growth concerns in the latest quarter. Also in valuation terms it is now among the most richly valued banks and one trade for lower levels.
- With the Sensex crossing the 40,000 mark the next target for the market will for the Nifty to scale the 12,000 levels.
