- Global cues like the toning down of the trade war rhetoric and the liberal QE promised by the ECB should help market sentiments get better from here on. Markets could also witness short covering at current levels.
- The sharp fall in oil prices closer to the $60/bbl mark should help the markets to settle in a more comfortable zone. China stimulus could keep the China story going. Overall cues appear to be positive for markets.
- FPIs were net buyers to the tune of Rs.784 crore while DFIs sold Rs.127 crore on Thursday. The selling from domestic institutions was quite a surprise but the risk-off trade appeared to have softened for now with the latest trade talks.
- Markets across the US, Europe and Asia have been in positive territory and that should benefit market sentiments overall. The SGX Nifty is flat but could get a boost to take the Nifty beyond the 11,000 mark on Friday.
- Banks could benefit on two fronts today. First are the hints of a rate cut from CPI and IIP. Second is the lower risk weightage to non-card loans. We like HDFC Bank and SBI as good buys at current levels with 10% upside target in one quarter.
- We are looking at a contrarian buy at Tata Steel at Rs.365 for targets of Rs.400 in one quarter. The upside could come from the proposed stimulus in China and hopes of resolution to the trade war.
- One can use any minor corrections in Walchandnagar Industries to buy into the stock with a short term target of Rs.100 in one quarter. The company recently got an ISRO order with more in the pipeline.
- Markets could see shorts covering ahead of the weekend due to the positive cues coming from global markets. Trade accordingly.
