- The Nifty ended almost where it started as fresh positions appeared to be tentative considering the F&O expiry on Thursday and the long weekend. The expiry could see some long unwinding ahead of holidays.
- The big story tomorrow could be PSU banks especially stressed PSU banks like IDBI Bank, Bank of India and Central Bank. These bank stocks could see healthy price appreciation considering that the recap policy has been favourable for them.
- FIIs were net buyers to the tune of Rs.776 crores while DFIs sold Rs.(-194) crore on Wednesday. The FPI buying continues and they have infused more than $2 billion in the month of January. Domestic funds are currently on the sidelines.
- There was pressure visible across the US and European markets but Asia was largely on the positive. The SGX Nifty is in positive territory and could make a dash for 11,100 mark on the last trading day of the January settlement.
- We have been recommending a short on Bharti Airtel and we still reiterate our short position on Bharti Airtel and Idea with another 10-15% downside targets. The price competition is just getting too much for them to handle.
- Keep an eye on Indigo which looks undervalued even at Rs.1260. The last quarter numbers have been flattering and it could further broaden its RASK spread. A good consumer play and also a good dividend yield play. TGT Rs.1600/- in 1 quarter.
- Kalpataru has an overflowing order book position and could be the stock to watch out for. At Rs.510, the downside risks appear to be very limited. One can buy for targets of Rs.650-660 in one quarter.
- We recommend adding Interglobe Aviation to your portfolio. Could be a good proxy for rising affordability of Indian households.
