Market Headstart: Nifty likely to open flat; Tata Steel, Bharat Forge top buys

The Nifty50 is likely to open flat on Monday following muted trend seen in other Asian markets after China’s central bank said it was cutting the amount of cash that banks must hold as reserves, releasing liquidity to shore up a slowing economy dogged by the Sino-U.S. trade conflict.

“Risk sentiment was also fortified as Fed Chairman Jerome Powell said Friday that the central bank will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy,” said a Reuters report.

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 15.5 points gain or 0.14 percent. Nifty futures were trading around 10,975-level on the Singaporean Exchange.

The S&P BSE Sensex rose 337 points to 36,981 while the Nifty50 closed 98 points higher at 10,946 on Friday.

Stocks in news:

Cafe chain operator Coffee Day Enterprises on September 7 announced the appointment of IDFC Securities as an advisor to identify strategic options and advise it on refinancing of existing debt.

State-owned Canara Bank on September 6 invited bids to sell 30 percent stake in its housing finance subsidiary Can Fin Homes Ltd (CFHL).

Tech Mahindra announced the expansion of its strategic collaboration with AT&T to accelerate AT&T’s IT network application, shared systems modernization and movement to the cloud.

Technical Recommendations:

We spoke to Angel Broking and here’s what they have to recommend:

Tata Steel: Buy| LTP: Rs 356.35| Target: Rs 388| Stop Loss: Rs 337| Upside 9%

Bharat Forge: Buy| LTP: Rs 394.95| Target: Rs 426| Stop Loss: Rs 375| Upside 8%

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