- The weekend reforms package focusing on the housing and exports sector could be a major boost for the markets in the coming week. These were the stressed sectors and likely to specifically positive for low cost housing plays.
- The attacks on Saudi Aramco oil facilities by Houthi rebels in Yemen are likely to bring back the risk of geopolitics in the Middle East. Monday could see higher crude oil prices and that could be a headwind for Indian markets.
- FPIs were net sellers to the tune of Rs.405 crore while DFIs bought Rs.210 crore on Friday. After 2 days of buying, we saw selling coming back from FPIs. However, the thawing of global risks could likely lead to FPI flows returning.
- Markets across Europe were in the positive even as Asian markets were sharply in the positive on Friday. The SGX Nifty has been slightly tentative despite the reforms package as Saudi oil shutdowns could be a key factor.
- After the sharp rally on Friday, BPCL could be at risk at the price off Rs.410 due to the drone attacks on Saudi Aramco facilities. One can look to sell the stock at the current price with a stop loss around the Rs.419 mark and target of Rs.380.
- With the new set of export sops taking shape, we reiterate our bets on the speciality chemicals space with a buy call on Aarti Industries at Rs.1575 with targets of Rs.1800 in one quarter with its 45% export intensity.
- One can use any minor corrections in Walchandnagar Industries to buy into the stock with a short term target of Rs.100 in one quarter. The company recently got an ISRO order with more in the pipeline.
- Markets could see mixed trend with the reforms package working positively and the geopolitical risk to oil working negatively for markets.
