- Nifty closed at 10,947 after a sharp rally in stocks like Reliance, GAIL and Axis Bank added heft to the Nifty. Short covering also helped the markets to move higher during the day.
- The big data point in the next few days could be the price of Brent Crude. With a major strike in the oil unit in Norway and supply disruptions from Iran likely, crude touched $79/bbl on Tuesday.
- FIIs were net sellers to the tune of Rs.(-21) crores while DFIs bought Rs.294 crore on Tuesday. Global investors are still measuring the impact of the trade wars with Trump threatening to touch $200 billion worth of Chinese imports.
- Markets across the Asian segment are deep in the red after fears of currency depreciation hit these markets. The SGX Nifty is also marginally down in early trades although India may not be that vulnerable to currency risks.
- DLF continues to be out top pick in the real estate space. The stock has corrected to around the Rs.185 levels and the benefits of deleveraging should be apparent. We target Rs.250 on the stock in one quarter time frame.
- RIL could be the stock to watch out for. With the big Fibernet launch and backed up by the aggressive foray into the gas distribution business, the stock could get back above the Rs.1100 mark soon.
- We continue to be positive on IndusInd Bank and the 24% growth in the latest quarter profits has only reinforced the valuation of the stock. We have a 3 month target of Rs.2200 on the stock.
- Key an eye on data points like CPI inflation, rupee defence and the trade wars. Nifty may face some resistance around the 11,000 mark.
