- The coming week is likely to be volatile on the back of the forthcoming G-20 Summit as well as the F&O expiry during the week. Oil prices and Middle East tensions will also keep the markets volatile.
- FMCG stocks could come under pressure as the anti profiteering authority has been given an extension of 2 years. Some of the FMCG companies were under the lens for not passing on GST cuts to the end customer.
- FIIs were net sellers to the tune of Rs.731 crore while DFIs bought Rs.446 crore on Friday. FIIs have started selling out in equities on a consistent basis as they are concerned about India’s vulnerability to higher oil prices.
- Markets across the US and Europe were in the red on Friday as most traders preferred to go into the weekend with light trading positions. SGX Nifty was flat in late trades and Indian markets are expected to be weak at higher levels.
- We expect most of the OMCs to react negatively to this heightened geopolitical risk in the Middle East. We suggest selling into stocks like IOCL, BPCL and HPCL for the short term with 10% downside targets on all the 3 stocks.
- With the proposed merger of Indiabulls Housing and LVB approved, it should give a sentimental boost to Indiabulls. We suggest buying into the stock at around the Rs.600 levels for short term targets of Rs.750.
- We again expect Zee to come under pressure as lenders increasingly look to write off loans from the Zee group and then they may push legal action. We remain sellers in the stock with downside targets of Rs.300 in next 1 month.
- Focus will be on the Middle East where the geopolitical situation is worsening by the day. That could hold the key to market sentiments on Monday.
