- The Nifty convincingly crossed the 10,550 mark and now looks headed for our original targets of 10,700 and later towards 11,000. Big results this week include TCS and Infosys apart from CPI and IIP numbers.
- The first advance estimate for the full year GDP at 6.5% for the fiscal will be a disappointment for the markets. We expect capital goods and infrastructure to react negatively to this data point.
- FIIs were net buyers to the tune of Rs.581 crores while DFIs bought Rs.243 crore on Friday. However, we do expect the weak GDP estimates to weigh on institutional buying in Monday’s trade.
- The big bull market appears to be continuing across markets with markets across the US, Europe and Asia rallying by over 1%. The SGX Nifty is trading at well above the 10,600 mark, though data flows during the week will be critical.
- With the bank recapitalization almost finalized, the big benefits are likely to accrue for the bigger PSU banks. We see SBI and PNB as the two biggest beneficiaries and both look good for 25-30% upsides from current levels.
- The decision by Hindalco to go aggressive on global acquisitions is a good move in this phase of the metals cycle. Here you can take a long position with a target of Rs.350 in the next 1 quarter.
- With its US truck sales growing rapidly, Bharat Forge could be the stock to watch out for. The defence foray and its potential in the next couple of years could also be huge. Buy around Rs.740 for targets of Rs.850-900 in 3 months time.
- While we await direction from the macro data and Q3 results this week, it would be a good time to accumulate Bharat Forge at current levels.
