NIFTY CONTINUES ITS UPWARD JOURNEY

  • The PSU banks were the star performers of the day with the Nifty crossing the 10,800 marks. Any news of a US-China trade deal is likely to benefit sentiments across the global markets including India.
  • Watch out for two-wheeler stocks and they could face further pressure. While the positive growth was maintained in December, the inventory days are beyond the 50 marks and that is not a great sign. Expect more pressure.
  • FIIs were net sellers to the tune of (Rs.-554) crores while DFIs bought Rs.698 crore on Tuesday. FIIs may have shown some signs of selling due to the weak rupee and that may be more temporary in nature.
  • Markets across Asia and Europe were positive on Tuesday although the US markets were flat to lackluster in the absence of fresh cues. SGX Nifty is strongly in positive territory and it could test the 10,900 marks again this week.
  • We reiterate our strong Buy call on SBI on the back of it being the biggest recipient of the NCLT recoveries. Also, SBI has shown the best traction in terms of bottoming out of the NPA cycle. Could be a good bet with a target of Rs.350 in a quarter.
  • Medium term investors can look at buying Biocon around the 620 levels for targets of Rs.720 in one quarter. The company is likely to get the added benefit of traction from its Syngene subsidiary.
  • With expectations of lower GST on real estate projects, one can buy DLF at current levels for a price target of Rs.215 in one quarter. The stock looks the best bet in reality after its deleveraging process is completed.
  • There will be some degree of caution as the Nifty approaches the 11,000 marks being its next big psychological barrier.

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