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Market update – Northbound journey continues in Dalal Steel … NBFC stocks gains amid rising volumes

· All round buying lifted Nifty over 1% to nearly 10300. Banking, Auto, Metal, NBFC, select tech stocks are major gainers today. The sentiment was boosted by hefty buying in banking and financials on hopes of industrial activity resuming as the nationwide lockdown was eased in non-containment zones. Positive global cues amid optimism over reopening of economic activities, FIIs' consistent buying and stimulus measures by global central banks also helped the rally. The Centre has been allowing gradual reopening of economic activities boosted market sentiment.

· Asian markets rose in early trading Monday, following better-than-expected U.S. jobs numbers Friday and an extension of oil-production cuts by OPEC and its allies on Saturday. US Dow Future is up 0.2%.

· IDFC First Bank gained 12%. Trading in the company's call options was triple the average. Trading volume was triple the average for this time of day.

ONGC, Oil India gained 4% on account of Brent crude surged to 3-month high of $43/bbl, recovered 50% from the recent low. Expects momentum continued on ONGC and Oil India.

· L&T Finance surged 6% amid hefty volume of nearly 2cr shares traded on NSE … We are positive on L&T Finance

· Improve collection and good monsoon boosted NBFC stocks. Market hope of demand will be back in the NBFC sectors and current risk reward are favorable. We are positive on , Shriram Transport Finance, M&M Finance, LIC Housing, AB Capital.

· Abnormal volumes – Chola Investment, PNB Housing, Bandhan Bank, Bharti Airtel, Ashok Leyland, TCS, Shriram Transport , Axis Bank…. Trading opportunity

Brokers Radar –

· SRF TGT by CITI at 4252

· DLF TGT B7 CLSA AT 190

· Jefferies TGT on DLF at 202

· Gujarat Gas CLSA TGT 345 from 360

· Credit Swiss TGT on SBI at 230,

· Morgan Stanley TGT on SBI at 205,

· SBI TGT by HSBC at 285.

· Vedanta TGT by CLSA at 95

· L&T overweight JP Morgan with TGT at 1135.

· L&T TGT by Jefferies at 1200

· L&T TGT by Credit Swiss at 1100