- Short covering in financials and metal stocks led to the Nifty closing in positive territory. However, global markets have been under some pressure and that could rub off on the markets on Friday.
- Traders are showing a preference to keep their positions light in the light of the saber rattling between India and Pakistan. One could see the pressure of unwinding of positions today ahead of the weekend.
- FIIs were net buyers to the tune of Rs.56 crores while DFIs bought Rs.202 crore on Thursday. The FPI flows started off on a positive note in the first week of February but later turned into outflows on global and domestic concerns.
- Markets across Asia came under pressure on oil crossing the $67/bbl mark. Also, Gold touching a new 10-month high was seen by the markets of rising geopolitical tensions. SGX is already trading in negative territory and pressure could build.
- We have been talking about a bottoming out in metals and minerals for some time now. We suggest aggressive traders to start accumulating Vedanta in the 160-165 range for targets of Rs.210 in one quarter.
- With the new alignments in Tamil Nadu, it looks like an advantage for the DMK, which is currently in the opposition in the state. This should be positive for Sun TV and we recommend buying around Rs.580 for targets of Rs.700 in one quarter.
- In the extraction space, we stay positive on Oil India at the current price of Rs.175 with targets of Rs.220 in one quarter as it still factors in a much lower realization on crude oil per barrel. Also, it remains a good dividend yield play.
- We do expect some caution in the market ahead of a weekend and the geopolitical situation. Stay light over the weekend.
