- Apart from the all important Infosys results, the week will also see the announcement of the CPI inflation number and the IIP numbers. Both will be critical inputs for the market direction.
- Keeping data aside, the big focus will be on the trade war, which has already escalated. The other immediate worry will be the INR value which is now very close to the Rs.69/$. Dollar strength could be the immediate trigger.
- FIIs were net sellers to the tune of Rs.(-968) crores while DFIs bought Rs.1482 crore on Friday. It is feared that a trade war could lead to further selling from most of the emerging markets, more so if the Yuan were to devalue further.
- US and the European markets were buoyant even as the Nikkei was also sharply in the positive. The SGX Nifty is already trading in positive territory and the Asian markets on Monday could be the key trigger for the Nifty.
- DLF continues to be out top pick in the real estate space. The stock has corrected to around the Rs.185 levels and the benefits of deleveraging should be apparent. We target Rs.250 on the stock in one quarter time frame.
- With the MSP a reality, the focus could shift back to agri stocks. The stock of Jain Irrigation has corrected to around the Rs.80 levels and it is a good time to buy with a target price of Rs.120 in the next one quarter time frame.
- Titan could the key consumer stock for value picking. Despite the sales warning given by the company management, the stock is already down by 15% from its peak price and any growth concerns are factored in.
- Key an eye on data points like CPI inflation, rupee defence and the trade wars. Downsides may be limited for now.
