- There are lot of data points during the week with the CPI Inflation, IIP Growth and the WPI inflation data expected to be announced. In addition, most key PSU results are also expected. US macros including Fed testimony could be the key.
- Traders can expect some positive reaction from financials, real estate and from autos due to a favorable CRR regime announced by the monetary policy. They could hold value in an otherwise two-way market during the week.
- FPIs were net buyers to the tune of Rs.162 crore while DFIs sold Rs.79 crore on Friday. FPIs have seen a surge of debt market investments post the monetary policy and that could be the key to FPI flows in the coming week.
- Markets across the US and Europe saw sharp correction on Friday after a smart rally in the previous three days. Asia was also weak on Friday and we will have to look at Asian cues to take a call on the Indian market trade for Monday.
- We expect further downsides in M&M after the sharp fall in profits and the lower level of domestic and export sales. One can look to sell the stock at Rs.570 for downside targets of Rs.530 in one month time frame.
- Value diggers should look to buy Coal India at around Rs.183 because with a strong dividend yield of 7-8% makes the stock extremely attractive. One can target Rs.230 on the higher side with a 3 month time frame.
- The latest deal with Total of France gives a big boost to Adani Green Energy. One can look to buy the stock at around the 202 levels for targets of Rs.240 in the short term and longer term targets of Rs.300 on the upside.
- It is likely to be a volatile week with a lot of diverse forces at play on the stock markets on the macro and micro front. Trade light in the week.
