• The Nifty stayed above the 10,600 mark but the Nifty showed signs of tiring at higher levels. However, the markets appear to be focusing on positives like the new industrial policy and likely growth revival.
• The decision to hike non-coke prices will go down well for Coal India. The stock is already attractive in dividend yield terms and has now also negated the wage increase impact. Look forward to a 10% upside on the stock.
• FIIs were net sellers to the tune of Rs.(-304) crores while DFIs bought Rs.523 crore on Tuesday. The FII trend needs to be watched closely to see if there are indications of risk-off trade.
• Markets across the world appeared to be giving up on some of the momentum of January. The global markets have already created equity wealth of $2 trillion in the last 6 trading sessions and are taking a pause.
• 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.
• With consistent performance in the last year Avenue Supermarts, owners of the D-Mart brand, could be the stock to watch out for. The stock has consolidated and now looks set to cross the Rs.1500 mark rapidly.
• We get back to our favourite in the auto space, Tata Motors. With fairly decent JLR numbers and good traction in domestic HCV business, the stock looks set to cross the Rs.500 mark in the short run. Position accordingly.

While we await direction from the macro data and Q3 results this week, it would be a good time to accumulate select PSU banks.