- The Nifty corrected from higher levels and closed at around 10,520 levels after nearly 9 consecutive sessions of positive returns. There was more of unwinding of long positions at higher level.
- We had recommended Zee at Rs.570 levels and one can hold at current price levels of Rs.588. Look to book the first round of profits on the at above the Rs.600 levels early next week.
- FIIs were net sellers to the tune of Rs.(-916) crores while DFIs bought Rs.870 crore on Wednesday. FPIs have been consistently selling this week and that could put pressure on the Nifty at higher levels.
- Markets across the US, Asia and Europe are clearly in positive territory. The positive effect is likely to rub off on the Nifty which is already evident from the SGX Nifty trading higher by nearly 0.6% in late trades.
- We see the pressure around vulnerable banks like ICICI Bank and Axis Bank building up further. Use any rises to short these banks as we expect both these banks to correct by at least 20% from current 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.
- With oil prices again crossing $72/bbl, we expect the pressure on oil marketing companies to rise, especially if they have to bear more of the subsidy burden. We stay negative on HPCL, BPCL and IOCL with 15% further downsides from here.
- The level of 10,600 may be the first stumbling block for the Nifty. The current situation is still vulnerable and calls for caution on the long side..
