- The Nifty closed the week and the year at 11,623 as a mix of fresh buying by FIIs and short covering in select counters led the Nifty higher. The index heavy financials have continued to support the markets.
- We see pressure coming into the markets in the early part of April and all eyes could be on the monetary policy. While expectations are of a rate cut, the RBI may not oblige due to weak transmission last time around.
- FIIs were net sellers to the tune of Rs. (-86) crores while DFIs bought Rs.1724 crore on Friday. Domestic funds are normally buyers in the last days of the fiscal year to keep the NAV values buoyant. We need to await fresh trends in
new fiscal.
- There was buoyancy across world markets on hopes of higher liquidity infused via central banks. World markets across the US, Europe
and Asia were strong and even the SGX Nifty is trading above the 11,700 range. Be cautious at higher levels.
- RBL Bank may up nearly 50% from the October lows but it still has room to go up on improved asset quality and aggressive growth. We target 750 on the stock in the next one quarter as results are expected to continue to flatter.
- NTPC continues to be the dark horse in trade today with the company most likely to benefit from the availability of power generation capacity at reasonable rates once they are referred to NCLT. That is likely to happen in the next fiscal.
- We are not giving any fresh call for the day and will take a fresh view after the policy clarity. We expect market strength on Monday although there could be pressure at higher levels.
- Monday marks the beginning of the New Year and there could be a trend shift compared to the month of March. Trade with caution on the long side.
