• On Tuesday, the Nifty almost closed where it started off. After the sharp fall on Monday, the Nifty will have a struggle breaking above the 10500 mark with volumes unless earnings provide a very strong trigger.
• The government decision to reduce the interest rates on small savings by 20-25 basis points will be another big boost to equities. More retail savings in the coming year will be shift towards equities and equity funds, pushing markets higher.
• FIIs were net buyers to the tune of Rs.523 crores while DFIs bought Rs.64 crore on Tuesday. Surprisingly, FIIs have been buyers in the equity market in the last 2 days and it needs to be seen if this sustains in the coming days.
• The NASDAQ and the Chinese and Hong Kong markets showed a sharp positive move on Tuesday. However, Europe was largely tepid in trades. The SGX Nifty is absolutely flat and looks to continue its lacklustre movement.
• After the monthly numbers, we see TVS Motors being a major driver for the auto sector growth with a 39% growth. We like the stock and see the stock touching the Rs.1000 mark in the first half of the year. Position yourself accordingly.
• We have been suggesting Dish TV for quite some time since the Airtel DTH business was sold at a substantial premium to its enterprise value. We expect the Dish TV stock to scale the Rs.100 mark soon.
• We reiterate our buy call on Tata Motors with our target of above Rs.550 in the next 3-4 months as the full traction of domestic and JLR business kicks in. One can also look to buy Tata Motors DVR instead at a lower price.

We are not making any fresh additions in our equity portfolio today and will wait for the Nifty to give direction.