- The Iranian oil embargo continued to weigh on Indian markets as crude is now standing above the $74.30/bbl mark. This has put pressure on most of the OMCs on fears that subsidy may be shared with the OMCs.
- With the prospects of Jet recovery becoming almost negligible, market attention is shifting to competitors who could gain market share. Traders can look to build longs on Indigo (Interglobe) for 20% upsides from here on margin expansion.
- FIIs were net sellers to the tune of Rs. (-237) crores while DFIs bought Rs.198 crore on Tuesday. FII buying may come under a bit of pressure as the elections approach and the rising oil prices put pressure on the Indian current account deficit (CAD).
- There was a sharp rally across the US and Europe. In Asia countries like Indonesia benefited due to higher oil prices. The SGX Nifty is in positive territory and that could also come about from positive growth signals from the US.
- We liked the Tata Global stock. The fall in profits in the fourth quarter was more due to the tax credits in the previous years and hence may not be comparable. But at Rs.208, the stock is available at 24X P/E. Look for targets of Rs.150.
- As Jet could sink deeper in the markets on Monday, one needs to go short on most vulnerable stocks with vulnerable commitments. This includes stocks like Zee Entertainment, DHFL and Repco Housing. All could come under pressure.
- ACC is another company to have announced results on Tuesday and saw sharp growth in volumes, pricing power, and profitability. Look at accumulating for 10% upsides from here in 1 quarter.
- While oil will be a concern, the positive growth cues from the US and China could actually keep the stock markets robust on Wednesday.
