- The markets held on at higher levels despite the volatility as hopes of a trade deal between the US and China kept the markets buoyant. The first phase of the deal is expected to be signed on 15 January 2020.
- We have been talking about metal stocks and these stocks have rallied over the last few days. If the Phase 1 goes through then most stocks like Vedanta, NMDC, MOIL and even Hindalco and NALCO could see further buying interest.
- FPIs were net sellers to the tune of Rs.206 crore while DFIs sold Rs.642 crore on Tuesday. In fact, FII selling in debt has been quite pronounced and is likely to gather pace in the next few days due to sharply higher inflation.
- US and European markets were flat to negative as they awaited final cues coming in from the Phase 1 of the trade deal expected to be signed on Wednesday between the US and China. SGX Nifty is flat and Asian cues could hold the key.
- Since the time we recommended Infosys at around 730 levels, the stock has moved up to Rs.775 on the back of good results. We upgrade our targets to Rs.880 for investors while traders can look to book profits around Rs.800 levels.
- We advise caution in IndusInd Bank because despite growth in profits, markets are unlikely to be impressed with the sharp rise in provisioning for NPAs. Look to sell the stock at Rs.1480 with targets of Rs.1350 on the lower side in 1 month.
- Adani Ports could come under pressure due to the recent rating downgrade by ICRA, although downsides will be limited. Use lower levels of Rs.365-370 to accumulate the stock for targets of Rs.475 in one quarter.
- Market focus will be largely riveted on the phase 1 of the trade deal and a positive outcome will boost global markets sentiments and help FPIs turn risk on.
