- The SGX Nifty is already showing a correction of over 100 points and that could have an impact on the Nifty even as the US markets were deep in the red on the back of rising bond yields and rising trade tensions
- With the Dow and the NASDAQ seeing deep cuts on Thursday, the Indian markets could be more of a sell on rises market. Also, traders will prefer to remain light ahead of the week end.
- FIIs were net buyers to the tune of Rs.140 crores while DFIs sold Rs.(-343) crore on Wednesday. With the interest spread between the US and India and widening, we could see some reversal of flows back into India.
- Dow and NASDAQ saw deep cuts to the tune of nearly 2%. Most of Asia is deep in the red with the SGX Nifty also losing around 100 points from the peak. A lot will depend on how the quarterly results pan out in Q2.
- We stay cautious on HFCs and NBFCs and suggest that stocks like Indiabulls Housing, Dewan Housing, and Bajaj Finance should be used sell on every rise. The IL&FS default overhang is likely to remain over these stocks.
- With the sharp upturn in the high value business (Above $1 billion), Infosys could see better traction in terms of operating and net margins in coming quarters. One can buy around Rs.700 for targets of Rs.820 in one quarter.
- IndusInd Bank may show a weak start on the back of numbers but one can look to accumulate the stock around the Rs.1,600 levels for targets of Rs.1,900 in one quarter as the IL&FS losses are now fully written off.
- Being the last trading day of the week, traders and investors are suggested to be cautious about week end offloading of positions.
