- In line with the global cues, the markets bounced back smartly on Tuesday with the Sensex more than recovering the losses of Monday. The banking and financials continued to dominate the Nifty on the upside.
- Oil continues to be the big question mark. While oil did face resistance at $68/bbl, the declining inventories in the US and the sharpening of sanctions open up the possibility of oil cross $70/bbl on the Brent market. Watch out for that!
- FIIs were net buyers to the tune of Rs.999 crores while DFIs sold Rs. (-197) crore on Tuesday. FIIs have now infused a sum of more than Rs.40,000 crore in the month of March in equity and debt put together.
- The positive sentiments continued on the US and European markets but Asia has been largely mixed. SGX Nifty has been in negative territory after the sharp rally on Tuesday and higher oil prices are also proving to be a thorn in the flesh.
- We expect banks and autos to continue to remain under pressure on Tuesday. Auto top line numbers appear to be under pressure. Negative on Maruti, Eicher Motors, ICICI Bank, IndusInd Bank. Play with short futures or put options.
- NTPC continues to be the dark horse in trade today with the company most likely to benefit from the availability of power generation capacity at reasonable rates once they are referred to NCLT. That is likely to happen in the next fiscal.
- With the latest QIP of Rs.8000 crore, DLF looks best poised to get out of debt fully and also to leverage on its commercial assets. We like the stock with a target price of Rs.250 in the next quarter.
- SGX Nifty is already under pressure and we expect pressure on the markets at higher levels. F&O expiry on Thursday will apply pressure after the rally.
