Market Headstart: Nifty likely to open above 10,800; 3 stocks which could give 4-6% return

The Nifty50 is expected to open with a gap on the higher side which should take the index above 10800 in the opening trade on Monday. The index closed 55 points higher at 10727 on Friday.

A gap-up opening is likely as Nifty Futures on Singaporean Exchange were trading over 100 points higher. The futures traded around 10,890-odd levels.

The Dow Jones Industrial Average closed 746.94 points higher at 23,433.16, or 3.3 percent, and briefly rose more than 800 points, CNBC reported.

Asian shares got off to a rousing start on Monday as a dovish turn by the Federal Reserve and startlingly strong U.S. jobs data soothed some of the market’s worst fears about the global outlook, Reuters reported.

The Indian rupee Friday rebounded by 48 paise to settle at 69.72 against the US dollar in line with smart gains in domestic equities and uptrend in other emerging market currencies.

Stocks in news:

Jet Airways has now failed to disburse the December salary to some other categories of employees as well, a source said. A Reuters report over the weekend suggested that the airliner is close to reaching a deal with State Bank of India (SBI) for a fresh loan of Rs 1,500 crore to meet its working capital needs, two people aware of the matter told Reuters.

State-owned BHEL said it has successfully commissioned a 800 MW thermal unit within a record time of 46 months in Telangana.

Banking services are likely to be affected on January 8-9 as a section of PSU bank employees would go on a two-day strike in support of the nation-wide strike call given by 10 central trade unions against the government's alleged anti-worker policy.

Technical Recommendations:

We spoke to 5nance.com and here’s what they have to recommend:

Escorts Ltd: Buy| LTP: Rs 724| Target: Rs. 759 | Stop-loss: Rs 680 | Upside: 5%

Hindalco Industries Ltd: Sell| LTP: Rs 210| Target: Rs. 201 | Stop-loss: Rs. 228| Downside: 4%

Jindal Steel & Power Ltd: Sell| LTP: Rs 152| Target: Rs 142| Stop-loss: Rs. 155 | Downside: 6%