• Private Banks and FMCG companies led the charge on Wednesday as the Nifty edged a tad loser to the psychological 11,000 mark. Metal and downstream oil companies came under pressure in trade on Wednesday.
  • The steel pack could come under pressure in the next few trading sessions after the weak guidance given by Tata Steel. That is likely to keep steel companies under pressure due to an anticipated slowdown in steel demand.
  • FIIs were net buyers to the tune of Rs.276 crores while DFIs bought Rs.540 crore on Wednesday. FII buying is normally muted in the first half of January and normally picks up steam only after that.
  • US and European markets again showed signs of strength after the US-China trade talks concluded on a positive note. The rising crude oil prices were also a positive cue for the global equity markets. SGX Nifty has held in positive territory.
  • The sharp rise in Brent Crude may be an ideal opportunity to buy Oil India at current levels to play on the rising crude prices. We would prefer OIL to ONGC considering that it has less of bailout commitments.
  • Medium term investors can look at buying Biocon around the 620 levels for targets of Rs.720 in one quarter. Company is likely to get the added benefit of traction from its Syngene subsidiary.
  • We suggest a short trade in IndusInd Bank considering that it has been less than transparent about its IL&FS exposure. We suggesting playing through 1560 or 1550 strike put options since premiums are down sharply.
  • Steel stocks may be under pressure. Overall Nifty is likely to face resistance around the 11,000 levels.

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