- The Nifty comfortably settled above the 10,800 mark with a 1% rally on Friday after it became clear that the OPEC was going to bring supply back into the markets. India immensely benefits from lower oil prices.
- The week is likely to be dominated by the OPEC outcome and the F&O expiry during the week. Of course, the trade war is getting intense and that will also be an overhang. The Nifty may continue to be range bound.
- FIIs were net sellers to the tune of Rs.(-1,343) crores while DFIs bought Rs.1,107 crore on Friday. FII selling could also quicken if India’s weightage in MSCI-EM reduces further post inclusion of Argentina and Saudi Arabia.
- While Europe continued to gain on expectations that BREXIT may be put off, most of Asia has been sceptical due to the trade wars. SGX Nifty is also under pressure and could have a fight to hold the 10,800 levels
- 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 crude prices headed below $70 in the short to medium term, could see end users like paints benefiting. By Asian Paints around Rs.1,265 mark for targets of Rs.1,350 and Rs.1,400 in one quarter ahead.
- With the latest EIR received from the US FDA, Biocon could see positive vibes going ahead. We suggest buying the stock at around the Rs.625 levels for targets of Rs.750 in one quarter.
- The markets may celebrate the OPEC decision on Monday although F&O expiry week will, by default, be volatile.
