- Nifty managed to scale the 12,000 mark on Wednesday and managed to close exactly at that point. The rally in the last 10 days has been largely driven by Reliance and TCS and some participation from Bharti.
- The likely delay in the trade deal is likely to have an impact on Indian markets after China objected to US interference in Hong Kong. China has reiterated that any such action by the US could worsen relations and make a trade deal difficult.
- FPIs were net buyers to the tune of Rs.567 crore while DFIs bought Rs.183 crore on Wednesday. FPIs have now infused close to Rs.19,000 crore in the month of November and that has held markets in good stead.
- The US and European markets came under pressure due to a likely delay in the trade deal. Asia has also opened weak on Thursday while the SGX Nifty is marginally in the negative. This is likely to impact markets today.
- The Zee deal is likely to happen at a much lower level than anticipated. A likely deal at Rs.270 would mean the stock would correct sharply and that is the reason we have been suggesting to go short on Zee for quite some time now.
- We anticipate further downsides on Yes Bank after the huge divergence of Rs.3300 crore reported by the RBI. The stock could now correct all the way back to below the Rs.50 mark as outlook appears hazy. Stay on the sell side.
- We suggest a value buy on Coal India as it attempts to expand production to normal levels and the dividend yield continues to be a key play. Look to buy around Rs.203 for targets of Rs.240 in one quarter.
- The telecom moratorium should come as a relief for the Indian markets as it will give some breathing room for Bharti and Vodafone over 2 years.
