- Weak cues from the global markets and weekend caution may pressure Indian markets on Friday. Most global markets were sharply down on Thursday and Asia is also under pressure on Friday early trades.
- The ECB decision to hold rates and also to ease liquidity was met with negative response from most of the world markets. It was a clear admission that the pressure BREXIT and world trade were showing on the EU region.
- FIIs were net buyers to the tune of Rs.1138 crores while DFIs sold Rs. (-925) crore on Thursday. The FIIs have already pumped in nearly $3 billion in the last 10 trading sessions even as DFIs have been net sellers.
- Markets across the US, Europe, and East Asia reacted negatively to the ECB decision to delay rate hikes. It was seen as a desperate sign of rising economic concerns in the EU region. The Indian markets are also likely to be under pressure.
- With a bottoming out of the metal slowdown expected, one can look selectively at metal companies at current levels. We like Hindalco at the current price of Rs.203 with a target of Rs.240 in one quarter.
- Despite the bounce from lower levels, RBL still looks attractive at the current price of Rs.620. We suggest medium term traders go long on RBL with an upper price target of Rs.700 in the next quarter.
- We suggest selling stocks where after governance concerns, the stock have bounced sharply. One case in point is Zee Entertainment that has bounced from 290 to 450. Suggest selling around Rs.460 for downside targets of Rs.410.
- Being a week end we suggest being cautious on the market. Markets are likely to see resistance in the 11,000 to 11,100 range of the Nifty.
