- Nifty trading is back of Friday after a break when the equity markets and the money markets were shut. Markets are likely to be cautious ahead of the long week end and an expiry next week.
- Traders must be cautious about downstream oil stocks that have rallied sharply in the last few days. With oil facing resistance at higher levels, the higher GRMs and better inventory valuations may be already factored in.
- FIIs were net buyers to the tune of Rs.1772 crores while DFIs sold Rs.(-1323) crore on Wednesday. FIIs have now infused over Rs.27,000 crore in the month of March and over Rs.37,000 crore since the third week of February. DFIs remain sellers.
- A sharp rally in the Dow, NASDAQ and the FTSE were the highlights of Thursday. While Asia reacted positively to the Fed status quo on rates, the SGX Nifty was tepid around the 11,600 mark. Nifty spot is expected to get closer to 11,600.
- We have been talking about IT stocks for some time after the recent upgrade by NASSCOM on its growth targets. We like Infosys around the 725 levels with price target of 790 in one quarter.
- With the realty sector picking up, it is time to pick the undervalued housing finance stocks with a good pedigree. We like LIC Housing at 520 with targets of Rs.575 in one quarter, considering its near single-digit P/E ratios.
- We continue to stay negative on Zee Entertainment and it looks a lot more vulnerable after the recent bounce on stake sale talks. We suggest selling Zee at 442 with targets of Rs.380 in one quarter.
- Markets may test the 11,600 on the Nifty on Friday but may face selling pressure at higher levels. Position accordingly.
