- It was Powell Power on display as the Nifty raced ahead on the dovish tone of the Fed settling above the 10,850 marks on Thursday. Even the F&O settlement contributed with its share of shorts being covered.
- With the RBI focusing on easing terms for NBFCs, watch out for the quality NBFC names like Bajaj Finance for further upsides. Even DHFL is a good buy around the 200 marks for upside targets of Rs.250 and beyond.
- FIIs were net buyers to the tune of Rs.823 crores while DFIs bought Rs.973 crore on Thursday. The month of November has been a positive one for the FII flows with equity flows far outperforming debt inflows showing valuation comfort.
- After a strong positive reaction to the Powell statement, the market gains were tempered overall in the US and in Asia. The SGX Nifty is also expected to be measured ahead of the weekend and also the G-20 Summit in Argentina.
- We continue to stay positive on Infosys and now also turn positive on TCS with the US court ruling in their favor on the discrimination issue. If the US stops rate hikes, a revival in growth could also help these IT companies.
- With the latest report by ICRA on the huge capital shortfall of aviation companies, we could see Jet outperforming Indigo due to its Etihad advantage. One can look at buying Jet and exiting Indigo to play on the outperformance.
- With oil prices sharply down below the 60/bbl mark, one can create a portfolio of downstream oil companies like BPCL and IOCL to play the lower prices. For now, the subsidy issue also appears to be on the back burner.
- We continue to maintain our target of Rs.10,950 for the Nifty although the 11,000 may prove to be a psychological resistance.
