- Even as the trade war showed no signs of abating, the markets are betting on some progress in the China-US talks this week. Dow and the NASDAQ did see some respite on Wednesday even as oil recovered from lower levels.
- We have been talking about the vulnerability of Zee for the last few days and the stock corrected nearly 20% in a span of just 2 days. With Reliance MF selling shares, we expect more funds to follow suit as asset sale looks increasingly difficult.
- FIIs were net sellers to the tune of Rs. (-702) crore while DFIs bought Rs.233 crore on Wednesday. FIIs have persisted selling in the last few days and that has also had an impact on the rupee value
- US and European markets recovered on Wednesday but most of Asia has opened weak on Thursday with Hang Seng and Japan weak. The SGX Nifty is also trading weak and the downtrend could persist through the day.
- We have been giving negative reports on Zee for some time now and the sharp correction on Tuesday goes to show the stock is still vulnerable. We expect the stock to close below the Rs.300 mark in the weeks to come.
- After a sharp correction in Britannia over sales weakness and governance issues, we see the stock bottoming out around the Rs.2650 levels. Medium trades can look at buying around these levels for targets of around Rs.3000 in a quarter.
- Among the private banks, the stock of Bandhan Bank has corrected sharply after its results. One can look to buy the stock at around Rs.550 levels for targets of Rs.700 to Rs.725 in the next quarter.
- A lot will depend on how Europe and the US markets open later during the day. That will be the key to how Indian markets trend during trading.
