- The Italian connection really did not have a major impact on the Indian markets with the Nifty holding the 10,600 mark. Also by late noon it was clear that the Italian problem really may not be too serious.
- One can look forward to a sharp uptick in the Indian markets on Thursday as shorts are likely to get covered on F&O expiry day. With most markets bouncing on Wednesday, the impact is likely to be limited on Thursday.
- FIIs were net sellers to the tune of Rs.(-1287) crores while DFIs bought Rs.492 crore on Wednesday. The FII selling has continued virtually unabated and debt selling has been much higher in the case of FIIs.
- While Asia saw deep cuts on Wednesday trading, the real action was positive in the US and in Europe. The SGX Nifty is trading close to the 10,660 mark and could pull the market towards the 10,700 mark on expiry day.
- We feel that the level of 208 is a good level to pick up DLF once again. The stock is poised to reduce its total debt to zero levels by middle of next year and the residential business is seeing a recovery. Target Rs.260-270 on the stock.
- With the stellar results announced by BPCL with 25% profit growth, the stock is likely to be in positive action on Wednesday. With oil prices tempering in the Brent market, one can trade BPCL and IOCL for 20% upsides from here.
- After making a low of Rs.140, Aditya Birla Capital has shown a smart pull back. We believe that the worst is over for the stock and despite valuation concerns, the stock is poised to move towards Rs.220 levels.
- While the expiry may end positively on Thursday, the road ahead may depend on cues from the Italian markets.
