- Markets have been slightly disappointed over the last few days with nothing concrete coming from the government in the form of announcements to boost the economy or to offer relief to the FPI on the tax front.
- The inversion of the yield curve continues to be the big challenge for the world economy with worries that this could be indicative of an impending slowdown in the world economy. Bond yields continued to trend lower.
- FPIs were net buyers to the tune of Rs.373 crore while DFIs bought Rs.296 crore on Tuesday. The weak rupee has kept the FPI flows tentative and traders are of the view that any rupee weakness beyond 72/$ could open up FPI selling.
- US and European markets were under pressure losing anywhere between 0.50% and 1% on Tuesday. The SGX Nifty is likely to test the 11,000 mark again quite vigorously on Wednesday depending on the news flows during the day.
- Apollo Hospitals is a stock that has got over its long range capital spending and also its concerns last year over the pledged shares. We suggest buying the stock around 1470 for one month targets of Rs.1600 on the stock.
- The positive expansionary announcements made by Maruti on Tuesday should help change the sentiments pertaining to the auto sector. Traders can look to accumulate Tata Motors at Rs.120 with targets of Rs.160 in 1 quarter.
- For long term buyers, this may be a good opportunity to buy Biocon at the current price of Rs.217. With its biological business still doing very well and a contract research business to boot, one can target Rs.300 in 6 months on the stock.
- Global cues could hold the key to stock markets on Wednesday, especially with crude oil closing above the psychological $60/bbl mark.
