- The Nifty was virtually flat on Wednesday, Thursday and Friday in the absence of any fresh cues from the global or domestic macros. The market is expected to take a more firm direction during the week.
- The Chinese decision to expand spending on US products should address the basic concern for the US and markets were sharply higher on Friday on the hope that it could finally lead to a rapprochement and toning down the trade war.
- FIIs were net sellers to the tune of Rs.(-125) crores while DFIs sold Rs.1 crore on Friday. However, with the positive signs coming from China, markets should react positively and the flows from FIIs should also be more forthcoming.
- There was a sharp rally in US and European stocks after China gave indications that it would work harder to end the trade war. Most Asian markets were also up and the SGX Nifty is trading closer to the 11,000 mark.
- We had given a buy call on RIL ahead of results at Rs.1140 and would suggest adding more of the stock at around 1180 levels. We target a price of Rs.1300 on the stock in the next one quarter.
- We have been talking about Sun Pharma going below Rs.400 and we now see the stock getting closer to the Rs.320 mark as the money laundering case becomes murkier. We stay short and suggest more short side trades on Sun.
- With the overall restructuring likely in the Tata telecom properties, expect the land bank value of Tata Communication also to reflect in the price. At Rs.530, the stock has an upside of nearly 20% from current levels.
- Monday could be a positive day, more so with the US Fed officials also indicating that they may adopt a more dovish stance on rates.
