- Markets have reached a stage where it becomes hard to take a macro view and only a stock specific approach may really work in the Indian context. Nifty may still face resistance at higher levels.
- The big news for the week will be the Fed rate meet that concludes on July 31st. While the CME Fedwatch is not hinting at a lower probability of 50 bps rate cut, the markets are likely to be disappointed with a 25 bps cut.
- FIIs were net sellers to the tune of Rs.1503 crore while DFIs bought Rs.1908 crore on Friday. FPIs have now sold closer to $2 billion in the 3 weeks post the Union Budget announcement on July 05th.
- While the whole of Asia was under pressure on Friday, the US and European markets bounced on better than expected growth coming from the US. SGX Nifty is likely to be positively impacted on Monday morning by the US cues.
- Indiabulls group could come under selling pressure after the latest allegations made by Senior BJP leader, Subramanian Swamy. That is likely to put pressure and one can play the stock on the downside with put options.
- One can look to accumulate Bank of Baroda after better than expected results on the counter. Look to buy in the range of Rs.110 to Rs.112 for upside targets of Rs.150 and Rs.155 on the stock in one quarter.
- Stocks like Lupin and SBI Life could offer defensive bets in a volatile market. We target Lupin with targets of Rs.820 and SBI Life with upside targets of Rs.900 in one quarter from current levels.
- Markets will continues to be volatile and a lot could depend on the Sovereign bonds and the FPI tax decision expected this week.
