- Despite optimism of the trade deal between the US and China, the last F&O expiry of the year did result in some selling pressure as the Sensex settled nearly 300 points lower. Most of the frontline stocks came under pressure on Thursday.
- The US dollar would be the variable to watch out for. With the dollar index moving up in the US, pressure on the INR is likely. In addition, the data point that India borrowed $23 billion last year in dollar bonds will also keep INR under pressure.
- FPIs were net sellers to the tune of Rs.504 crore while DFIs bought Rs.120 crore on Thursday. FPI flows are normally tepid towards the end of the calendar year and we may get a clearer get a clearer picture only in the New Year.
- NASDAQ touched a record level of 9000 on Thursday and that should keep tech stocks buoyant on Friday. Rest of the world markets have been tepid and the Indian markets could also be neutral to negative on the last day of the week.
- We had suggested exiting RIL for the short term around 1560 levels due to the issues pertaining to the sale of its refining business stake to Aramco. We expect the pressure to continue and don’t recommend buying till Rs.1400 levels.
- With oil prices in the Brent crude market going above $66/bbl, the Indian oil extraction companies have not reflected that in the price. One can expect upsides in ONGC buy buying the stock at Rs.125 for targets of Rs.160 in one quarter.
- We stay positive on NMDC as the best play on metals and minerals in India with the potential to grow sharply once the trade deal takes shape and the China stimulus commences. We target Rs.160 on NMDC by March 2020.
- The sector to watch out for will be the technology sector after the NASDAQ scaled all time highs on Thursday. IT sentiments could be positive in India.
