- After a sharp correction in the markets on Friday, the Indian markets could again face pressure as it closed below the psychological level of 11,500 on Friday. Asian cues have not been too encouraging and that is likely to rub off.
- After the US Fed policy hinted at a distinct slowdown in growth, all eyes will be on the RBI policy on 04th The market is building a 25 bps rate cut and a disappointment on this front could actually roil markets on the downside.
- FIIs were net buyers to the tune of Rs.1375 crores while DFIs sold Rs. (-1323) crore on Friday. Foreign investors have infused over Rs.38,000 crore into debt and equity in the month of March and this trend is likely to continue through the end of March.
- On Friday, there was a virtual carnage across Europe as there appeared to be no signs of a resolution on the BREXIT front. Nikken is deep in red by over 3.5% on Monday and the SGX Nifty is also 0.5% down. The trend could be down.
- We expect banks and autos to once again come under pressure on Monday. Auto top line numbers appear to be a lot more under pressure. Negative on Maruti, Eicher Motors, ICICI Bank, IndusInd Bank. Play with short futures or put options.
- With the realty sector picking up, it is time to pick the undervalued housing finance stocks with a good pedigree. We like LIC Housing at 520 with targets of Rs.575 in one quarter, considering its near single-digit P/E ratios.
- We expect downstream oil to continue to be under pressure as the game of higher GRMs and better inventory valuations may have already played out. The risk of subsidy becomes real if oil prices scale higher.
- It is likely to be a tricky day of trade on Monday as pressure from global cues battles with volatility ahead of F&O settlement this week.
