- The level of 10,800 continues to be a major resistance for the Nifty as most of the pharma stocks gave up some of their frenetic rally of the last few weeks. Oil continued to outperform the market ahead of the Vienna meet.
- India also retaliating to the US trade war means that the impact is likely to be more widespread and long standing. The impact is likely to show in the form of a weaker INR vis-à-vis the dollar.
- FIIs were net buyers to the tune of Rs.1,127 crores while DFIs bought Rs.664 crore on Thursday. The FII buying appears to more of stock specific as the sentiments continue to be dampening on the flows front.
- It was a virtual sea of red across Asia as fears of a full-fledged trade war is taking its toll on the world economy. SGX Nifty is already under pressure and could dip below the 10,700 mark on Friday.
- We reiterate our buy call on HPCL with targets of Rs.400 in the short term. The OPEC meet is likely to veer towards greater supply and crude may get closer to the $70/bbl mark. That reduces the subsidy worry for government.
- With Titan continuing to quote below the 880 mark, we see a good upside potential with limited downside risk. We are targeting Rs.1000 on the stock on the back of strong store sales.
- We reiterate our buy call on Strides Shasun around the 385-390 mark with short term targets of Rs.500 and long term targets of Rs.700 for the stock. The Australian business should hold STAR in good stead.
- Being the last date of the week, we expect caution in the markets, especially in the light of OPEC meet and the trade war.
