- As markets go into a long weekend, the markets are likely to remain in a tentative state. There has been heavy selling in the last few days and that is likely to weigh on the market sentiments.
- With the Fed minutes indicating that there may not be further rate hikes, it could be a double whammy for India. Firstly, that would mean a stronger dollar and hence a weaker rupee. It will also make the markets less liquid.
- FPIs were net sellers to the tune of Rs.903 crore while DFIs bought Rs.1719 crore on Thursday. FPI selling may sharpen on Friday on expectations of a weaker rupee after the Fed signalled that there may not be further rate cuts.
- Global markets have been flat to weak on Thursday and that has been the trend across the US and Europe. The SGX Nifty is also under slight pressure over a long weekend. Auto stocks could hold the key as the slowdown continues.
- We like Britannia after the recent correction and recommend buying around the Rs.2400 mark. We had earlier recommended at Rs.2550 and such investors can look to average their long positions. Target Rs.2800 in one quarter on the stock.
- Coal India has corrected sharply in the last few months and is now available at a P/E of just about 11. Also the dividend yield is nearly 8% and that gives sufficient scope for the stock to enhance value. Buy with target of Rs.225 in one quarter.
- Short term traders can look to trade long on 63 Moons. With the Mumbai High court rejecting the transfer of liabilities of NSEL to 63 Moons, the company stand has been largely vindicated. Expect the company to trend closer to Rs.140.
- Markets are likely to react to the Fed hint at no more rate hikes and the uncertainties ahead of the outcome of the Jackson Hole symposium.
