Markets remained under pressure due to a surge in USDINR above 82.5 forcing Nifty 50 to end lower by 0.3% around 18650. The announcement of the cap of USD 60 a bbl on Russia Oil has forced Brent Oil to move below USD 80 a bbl which may have provided some temporary relief to the Indian markets. The short-term bottom in Brent oil is likely to extend towards USD 74, before we may see a major turnaround. For Nifty 50, the strategy remains to buy on a decline with a stop loss of 18100 and a target of 19867.
Brent Crude prices have seen a sharp correction since June 2022 after declining from USD 124 a bbl to all the way to USD which has led to a major recovery for oil-importing countries like India. However, at this juncture, it can be construed that Wave 4 ‘Flag Correction’ has already taken its course and Brent crude may be positioned for hitting USD 150 a bbl in the next few months. We expect Brent crude to now bottom out around USD 74 a bbl. One can enter long trades around USD 74 a bbl with an SL of USD 70 for a target of USD 150 a bbl.
Nifty 50 index
Stocks to watch
Positive Read through
- Infosys Buyback is to open today.
- Cement companies are to undertake a hike by Rs 10-15 per bag in December.
- Mastek partners with UK-based alternative parcels for Oracle Cloud Solutions.
- HDFC AMC- Abrdn to sell 9.9 pct of a total 10.21 pct stake to a single buyer.
- Siemens lowest bidder for 9000 HP Electric locomotive Project in Goa.
- ICICI Lombard- Nov premium up 19 pct, market share up 40 bps.
- Amara Raja Batteries- AP HC extends suspension of closure order for 3 units by 8 weeks.
- Star Health- Nov premium up 16 pct, market share down 18 bps.
- Craftsman Auto- White Oak Capital, ADIA, India Acorn ICAV buy shares in bulk deals.
- 5Paisa- Board approves merger with IIFL Securities online retail trading business.
- Ircon- Bags order of Rs 122 cr from Sri Lanka Railways.
Negative Read through
- ONGC, OIL in focus- oil slips further, Brent below USD 80.
- Voda Idea- proposal to issue debenture to ATC Telecom lapses.
- Sapphire Foods- Fennel Private sells 6 lakh shares at Rs 1390 a sh.
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