Market Headstart: Nifty likely to open higher; SBI, HDFC Bank top buys

The Nifty50 is expected to open higher on Friday tracking positive trend seen in other Asian markets as the United States and China agreed on Thursday to hold high-level talks early in October.

“Safe havens such as government bonds and the yen were sold amid signs of easing U.S.-China trade tensions and as firm U.S. economic data bolstered risk appetites,” said a Reuters report.

U.S. Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities, it said.

The S&P BSE Sensex fell 80 points to 36,644 while the Nifty50 rose 3 points to close at 10,847 on Thursday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 32 points gain or 0.29 percent. Nifty futures were trading around 10,894-level on the Singaporean Exchange.

The rupee settled for the day with gains of 28 paise at 71.84 against the US dollar on Thursday as investor sentiment revived after China and the United States said they will resume trade talks.

On the institutional front, FPIs were net sellers in Indian markets for Rs 561 cr while the DIIs were net buyers to the tune of Rs 699 cr, provisional data showed.

Stocks in news:

Drug major Sun Pharmaceutical Industries on September 5 said markets regulator SEBI has ordered a forensic audit on the company's financial statements for three years between 2015-16 and 2017-18.

Telecom stocks will be in focus after Reliance Jio Infocomm launched the much-awaited JioFiber with prices starting as low as Rs 699 per month and all the way up to Rs 8,499 per month for speeds up to 1 Gbps.

Owing to the slowdown in the automobile industry, Mahindra & Mahindra has deferred its planned capex of around Rs 1,000 crore by a year, which, if not reversed within this fiscal, would lead to more job losses in the sector, the company's MD Pawan Goenka said on Thursday.

Technical Recommendations:

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

SBI: Buy| CMP: Rs.273 | Target: Rs 290 |Stop Loss: Rs.260 | Upside 6.2%

HDFC Bank: Buy| CMP: Rs.2235 | Target: Rs 2375 |Stop Loss: Rs.2225 | Upside 4.4%

LIC Housing Finance: Sell| CMP: Rs.395 | Target: Rs 330 |Stop Loss: Rs.440 | Downside 16%

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