- The Nifty cracked close to 10,750 levels after almost coming close to 11,000. The huge sell off on Friday was driven by across the board selling due to fears that the US shutdown coupled with a trade war slowdown could spook growth.
- Indian markets get into a truncated week with an F&O settlement and a bank strike. Traders are advised to be wary of carrying overnight risk on large positions as year-end volatility could be the norm in the coming week.
- FIIs were net buyers to the tune of Rs.134 crores while DFIs sold Rs.(-489) crore on Friday. Most of the selling was on account of unloading of leveraged positions by traders. Normally the post Christmas week is a quiet week for FIIs.
- The big damage on Friday was in the US markets with the Dow correcting 2% and the NASDAQ correcting 3%. Most FAANG stocks have lost nearly 30% of peak values. Asia was subdued even as Japan was weak. SGX Nifty was flat.
- One must start looking at the downstream oil companies like HPCL and BPCL at current crude prices. There is a huge hidden benefit for them at current price levels and can trade these stocks for 25-30% upside potential.
- We have been pushing Dewan Housing from lower levels and we still find value in the stock at the 235-240 levels. One can buy this stock with a price target of Rs.320 in the next one quarter as they set their balance sheet in order.
- With the massive capitalization of banks and a push to NCLT, look to buy SBI at the current market price of Rs.290 with targets of Rs.330 in one quarter. It could be big beneficiary from the banking boost in the coming year.
- With oil and VIX at lower levels, the markets really may not correct. Just be cautious on volatility in the last week.
