- The buoyancy in the markets continued with Tata Motors and power stocks giving positive returns on Monday. The Nifty is now just about 100 points away from the psychological mark of 11,000 and the VIX still remains very low.
- It was a boost for power stocks like NTPC and Power Grid with more liberal norms for tariffs announced for the next five years by the CERC. It could be a game changer for power companies if ground level issues are addressed.
- FIIs were net sellers to the tune of Rs.(-61) crores while DFIs sold Rs.(-77) crore on Monday. Overall, institutional traders remained subdued for the day with a long Christmas holidays likely to ensure that the lull continued.
- Markets across the US and Europe remained under pressure on global uncertainty and the lack of clarity over BREXIT. Even the SGX Nifty is under pressure and the Nifty is likely to face resistance around the 11,000 mark.
- From a dividend yield point of view, Coal India may be a good bet at the price of Rs.250 with a price of target of Rs.290-300 in the next quarter. CIL could also benefit from better coal off take on the back of strong IIP numbers.
- In the mid-sized companies, we like NOCIL as a play on the specialty chemicals space with its major Rs.425 crore expansion plan underway. With comfortable cash flow and robust turnover ratios, stock looks set to cross the Rs.200 mark.
- With the new tariff policy with a lot of lenience announced, one can look at stocks like NTPC and Power Grid as a good play on the power space over the next one year with upside targets of 25-30% on these stocks.
- Global markets have lost $15 trillion in this calendar year and that will put pressure on Nifty closer to 11,000. Trade cautiously ahead of Christmas break.
