- The Nifty and the Sensex ended in negative territory on Thursday after the overhang of the BJP’s shock defeat in the by elections in UP and Bihar took the markets by surprise. 2019 will be more keenly watched.
- The proposed no-confidence motion against the government will also be closely watched on Friday. Also being the last day of the week, traders may be wary of carrying long positions into the next week. Trade cautiously.
- FIIs were net sellers to the tune of Rs.(-705) crores while DFIs bought Rs.256 crore on Thursday. Global investors are wary of Indian markets due to valuations and the overhang of the Fed’s likely rate hike by 25 basis points.
- While the US and the European markets were flat to positive, Indian SGX Nifty is under pressure due to the overhang of the no-confidence motion. Markets could also be negative ahead of a weekend.
- Havells latest pact with Hyundai Electricals will give it improved visibility in the contactors segment. Havells looks good for a 15-20% upside on a mix of summer sales and better consumer demand visibility.
- We have been aggressively pushing Vakrangee since the levels of Rs.170 and we believe that the current price of Rs.238 is a good exit level in short period. Fresh positions are not recommended as of now.
- We suggest staying in defensives like Hindustan Unilever, Asian Paints, and Bajaj Finance etc in the current markets. High beta may not exactly be a good idea considering the market uncertainty ahead.
- The no-confidence move will likely dent the aura for the government and one should be careful about heavy leveraged positions.
