Market Headstart: Nifty likely to retest 11K on crude oil woes; Tata Steel, Bharat Forge top buys

The Nifty50 is expected to open with a gap-down on Monday following muted trend seen in Asian markets as Oil prices surged to six-month highs after weekend attacks on Saudi Arabia’s crude facilities knocked out more than 5 percent of global oil supply.

“U.S. crude futures were up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output. Brent crude soared 13% at $68.06 after earlier rising to $71.95,” said a Reuters report.

Trends on SGX Nifty indicate a gap-down opening for the broader index in India, with a 100 points loss or 0.90 percent. Nifty futures were trading around 11,011-level on the Singaporean Exchange.

The S&P BSE Sensex rose 280 points to 37,384 while the Nifty50 closed 93 points higher at 11,075 on Friday.

The rupee marched higher for the seventh straight session on Friday to close at 70.92 per US dollar, up 22 paise, as softening crude oil prices and easing US-China trade tensions bolstered investor sentiment.

On the institutional front, FPIs were net sellers in Indian markets for Rs 405 cr while the DIIs were net buyers to the tune of Rs 209 cr, provisional data showed.

Overall, Foreign portfolio investors turned net buyers in the first half of September, pumping in Rs 1,841 crore into the capital markets, after remaining sellers for the previous two months.

Stocks in news:

The National Company Law Tribunal (NCLT) on September 13 approved the merger of biotech company Monsanto India Ltd with Bayer CropScience.

The board of directors of Andhra Bank on Friday accorded in-principle approval for the amalgamation of Andhra Bank and Corporation Bank with Union Bank of India as the anchor bank.

Navratna Defence PSU Bharat Electronics Limited (BEL) September 13 said it has won order worth Rs 5,357 crores for seven squadrons of Akash Missile System for the Indian Air Force.

Technical Recommendations:

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

Tata Steel: Buy| LTP: Rs 376.35| Target: Rs 388| Stop Loss: Rs 354| Upside 4%

Bharat Forge: Buy| LTP: Rs 412.60| Target: Rs 434| Stop Loss: Rs 401| Upside 5%

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