- The Nifty made a positive close at the 10,967 mark and should get beyond the 11,000 mark during the week. Weak oil prices, a strong rupee and lower bond yield are likely to favour Indian equities. 11,000 remains a resistance for Nifty.
- Asian Paints at Rs.1400 could be the dark horse as it could be a big beneficiary of the lower input costs due to the sharp fall in price of crude oil. One can look to accumulate the stock for targets of Rs.1600 in one quarter.
- FIIs were net buyers to the tune of Rs.1209 crores while DFIs sold Rs.(-482) crore on Wednesday. Global investors also saw sharply higher volumes and the rally in Nifty has been much beyond what most people expected in December.
- Other than Shanghai, most of the other key markets across the US, Europe and Asia were in positive territory. The SGX Nifty is already quoting above the 11,000 mark and that could be a big challenge for the market in the short term.
- Since we had pushed DLF, the stock has gone up nearly by 20%. We suggest booking profits on DLF and shifting to other realty stocks like Prestige and Indiabulls Real Estate where the restructuring could pay dividends.
- Traders can look to buy IDFC First Bank at around Rs.42 for medium term targets of Rs.60 and 65 on the stock. The merger will also bring in a new management under Vaidyanathan and that is likely to bring aggression to the bank.
- With the price of crude coming down sharply, it may be time to once again pick up Interglobe (Indigo). At the current price of Rs.1120, the stock offers a 25-30% upside in one quarter assuming that oil remains around these levels.
- With the crude price at 17 month lows, markets may be poised to get beyond 11,000 of Nifty. Stay positive with stop losses.
