How do you see the stock markets trading on Monday 13th December after the strong rally in the previous week? Do you suggest to buy any stock for Monday?

In the previous week, the Nifty and the Sensex closed with gains of nearly 2%. Even the mid cap indices and the small cap indices closed with strong gains of more than 2%. While the Nifty did manage to close the week above 17,500, the advance decline ratio continued to be biased towards sellers putting immense pressure on the undertone of the markets.

The coming week is a week when there will be lot of important data flows. For example, there is the US Fed meet on 15-Dec where a decision on rates and taper time table will be taken. In addition, there are CPI inflation and WPI inflation numbers as well as trade data. The data flows are likely to put pressure on the markets, due to inflation concerns.

Foreign investors net sold Rs.1,092 crore while domestic funds bought Rs.387 crore in equities on 10-December. Overall, the FPIs continue to trade risk on emerging markets. Coming to global markets the Dow was up 60 bps and NASDAQ was up 73 bps on Friday. While Europe was in the red, the SGX Nifty is trading 46 basis points up in early trades.

Finally coming to your question of buying ideas. I would suggest to buy FSN E-Commerce (Nykaa) around the Rs.2,100 levels for targets of Rs.2,500 over the next 2-3 months. The stock is down nearly 20% since the listing highs and offers a good opportunity. You can accumulate this stock for its sound model and profitable performance.