- Nifty could see some deep cuts over the week end as traders will prefer to stay light over the week end. The Dow has reacted negatively to Trump’s plan to impose tariffs on $50 billion worth of Chinese exports to the US.
- Commodities and oil could face a crunch as the trade war could actually lead to a slowdown in the world economy. Expect pressure on most commodity stocks over the week end and is best to play them on the short side through put options.
- FIIs were net buyers to the tune of Rs.161 crores while DFIs bought Rs.410 crore on Thursday. The scenario could change drastically if the Nifty was to correct decisively below the 10,000 mark and the trade war could lead to that.
- There were absolutely deep cuts of over 1.5% in the Down, NASDAQ, FTSE, DAX and CAC. In Asia, Hang Seng bore the brunt of the likely trade war between the US and China. We expect the Nifty to get closer to the 10,000 mark on Friday.
- 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.
- If you are looking at a good de-risked food stock then Godrej Agrovet could be the stock to bet on at the price of Rs.640 with a target of Rs.720. The growth should trump the valuation concerns, if any, on the stock.
- After the sharp correction since January, Tata Chemicals could be a good bet at Rs.665 levels. The company’s soda ash business is likely to see a positive turn in margins and even in valuation and DY terms the stock does look cheap.
- Stick to de-risked sectors like chemicals, food products and pharma for now. We can take fresh view on the market next week!
