- While the Nifty still closed above the 10,550 mark, the focus will largely shift to the F&O expiry during the week. We expect volatility during the week and the Nifty may attempt to scale 10,600 during the week.
- In the tech space, we feel that Tech Mahindra could be a good pick both in terms of revenue traction and the immediate outcome of the TCS results last week. We have a target of Rs.770 on the stock.
- FIIs were net sellers to the tune of Rs.(-21) crores while DFIs bought Rs.111 crore on Friday. While the net numbers were quite insignificant, there was significant block volume for FPIs and for DFIs.
- The Dow and the NASDAQ were sharply down on Friday and the weakness was visible across Asia. The SGX Nifty is already close to 75 bps down and we expect the pressure to continue on Monday.
- We suggest being a tad cautious in IT stocks after the sharp rally in the last few days. With IT stocks giving returns of 40-70% in the last 1 year, it may be time for some caution at higher levels.
- With a good monsoon report expect the positive build up to start on stocks in the agrochemicals and the fertilizers space. We specifically like Rallis, UPL, Tata Chemicals and Chambal Fertilizers from a 1-2 months perspective.
- We expect the results of HDFC Bank and IndusInd Bank to have a positive impact on the stock prices. Safe traders can look to buy both these stocks with 15% upside targets from current levels.
- While markets may look to scale the 10,600 mark, the F&O expiry volatility will continue to prevail on the market. Trade cautiously.
