- The markets outlook for Nifty will depend largely on how the Fed guides on rate hikes. If the Fed guides for 4 rate hikes instead of 3 (as is likely), then global markets are likely to react negatively to the news.
- Keep an eye on Ultratech. If it manages to get the better of Dalmia Cements in the Binani bid, then it would provide them a huge gateway to the Northern markets. Ultratech will emerge as a strong buy recommendation then.
- FIIs were net buyers to the tune of Rs.98 crores while DFIs bought Rs.198 crore on Wednesday. There is obviously a lot of caution to commit ahead of the all important US Fed meet announcement.
- Global markets were mixed ahead of the US Fed meet. A clear direction would emerge only after the clarity on the Fed guidance. SGX Nifty is mildly in the positive but that could change based on how the Asian markets open.
- With Sun Pharma receiving the US FDA approval for the psoriasis drug, the stock is likely to get re-rated positively. The downside risk on the stock is anyways limited around the Rs.500 mark and one can work for a bounce to Rs.575 levels.
- The introduction of low priced pizzas by Dominoes gives them access to almost all the possible segments of the fast food chain. We upgrade the stock with upside potential of 25% from current levels. Position yourselves accordingly.
- We recommend buying two stocks from a short term delivery perspective. While Adani Ports could benefit from the No Confidence motion not going through, LIC Housing looks clearly underpriced at current market levels.
- A lot will hinge on the Fed rates guidance but we expect it to be hawkish. Play sensitives with care and avoid PSBs for now!
