• Nifty ended the year at an all time high with the Reliance Jio and RCOM merger news likely to be the most positive for the markets. Now the Nifty may be headed higher towards 10,800 and 11,000 levels from here on.
• The rise in bond yields may be a worry for rate sensitives in terms of trading sentiments. With 10-year bond yields at around 7.39%, we expect the realty, banking and auto sectors to be slightly subdued.
• FIIs were net buyers to the tune of Rs.595 crores while DFIs bought Rs.461 crore on Friday. FIIs continued to be net sellers for the month of December and fresh buying is likely to come only after the Union Budget in February.
• Global markets were mixed on Friday with the US markets being weak and Asia being strong. High crude oil prices closer to $67/bbl are actually spooking equity markets across the globe. The SGX Nifty is also trading weak.
• Reliance Infra could be a stock to watch out for after the sale of its power business in India to Adani Transmission. Its focus on defence and roads should be higher margin business with lower debt and that should be value accretive.
• The stock to watch out for in the metals space could be NALCO. It has still underperformed compared to Hindalco but its low level of debt is a huge positive. With Chinese demand robust, NALCO could now get beyond the 100 mark.
• Sunteck Realty could be a good pick in the range of Rs.410-420. Apart from being shifted to the A group, Sunteck also has the added benefit of having a very clean and demand intensive business model. Target the stock for Rs.550+.

We are not immediately recommending any additional positions in the market and we can take a view next week.