Market Headstart: Nifty likely to open flat; 3 stocks which could give 7-8% return

Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 3 points or 0.03 percent. Nifty futures were trading around 10,959-level on the Singaporean.

The Nifty50 is likely to open flat on Tuesday following muted trend seen in other Asian markets. The index closed 54 points higher at 10,961 on Monday.

Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 3 points or 0.03 percent. Nifty futures were trading around 10,959-level on the Singaporean Exchange.

Asian shares and US stock futures slipped on Tuesday amid signs of pessimism about world growth, while sterling dithered as the latest plan for Brexit appeared to come and go with no progress, said a Reuters report.

The International Monetary Fund (IMF) on January 21 lowered its global growth projections for 2019 and 2020 to 3.5 percent and 3.6 percent respectively, citing a slowdown in several advanced economies around the world more rapidly than previously anticipated.

On the earnings front, as many as 27 companies on the BSE will declare their results for quather ended December which include names like Asian Paints, Havells India, ICICI Pudential Life, Oberoi Realty, TVS Motor Company, and Visa Steel etc. among others.

Asian Paints: PAT likely to fall by 3.8% YoY to Rs 545 crore

TVS Motor Company: PAT likely to grow by 2.8% YoY to Rs 158 crore

Havells India: PAT likely to fall by 10% YoY to Rs 174 crore

(All estimates are from Motilal Oswal)

Stocks in news:

Corporation Bank and CreditAccess Grameen will replace Dena Bank and Vijaya Bank in Nifty 500, Nifty Smallcap 250 and Nifty MidSmallcap 400 indices.

Local search engine Justdial Monday reported two-fold rise in standalone net profit at Rs 57.34 crore for the third quarter ended December 31, 2018.

Nomura: Buy Call With Target At Rs 765

Morgan Stanley: Overweight With Target At Rs 605

HDFC Asset Management Company (AMC), posted a 24.7% increase in its net profit to Rs 243.26 crore for the quarter ended December 2018 on the back of reining in costs and increase in assets under management (AUM).

Technical Recommendations:

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

Tech Mahindra Ltd: Buy| LTP: Rs714| Target Rs. 770| Stop-Loss: Rs 680| Return 8%

Kotak Mahindra Bank Ltd: Buy| LTP: Rs 1268| Target: Rs 1355| Stop-Loss: Rs 1220| Return 7%

Biocon Ltd: Buy| LTP: Rs 663| Target: Rs 715| Stop-Loss: Rs 630| Return 8%

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