- The Nifty is now within striking distance of the 11,000 mark and should be able to scale this level before the end of this month. Quarterly results till now have been fairly encouraging especially among banks and FMCGs
- We could be facing more of pressure at higher levels and hence stick to stocks that have margin of safety in their side. SBI at Rs.306-308 appears to be a great bet on the rapid movement on the ICT front. Target Rs.350 on the stock in 1 quarter.
- FIIs were net buyers to the tune of Rs.988 crores while DFIs bought Rs.210 crore on Friday. There appears to be no indication of risk-off trade among the FPIs and they have been consistent net buyers during January so far.
- Friday saw bullish sentiments across market as the US, UK, Germany France and most of Asia showed positive trends. The SGX nifty is already quoting around the 10,950 mark and indicates a decisive move towards the 11,000 mark.
- We expect a big benefit from the budget’s rural focus to companies in the fertilizer and agrochemicals space. We suggest buying Chambal Fertilizers, Tata Chemicals and Rallis at current prices for upsides of 25-30%.
- With Avenue Supermarts available at reasonably lower levels, it is time to start accumulate the stock. We anticipate the stock to get back to Rs.1500 mark on the back of solid fundamentals and best-in-class return ratios.
- Coal India could be an amazingly underpriced stock. The government could announce a power-for-all scheme in the budget and CIL could be a big beneficiary. At 284 the dividend yield is very good and target Rs.320 on the stock.
- Ahead of the budget we recommend buying stocks like Coal India, Chambal Fertilizers and Rallis quite aggressively.
