- The sharp 429 points bounce in the Sensex and the Nifty closing above the 12,100 mark was largely driven by the heavyweights like RIL and HDFC. Of course, telecom provided the much needed impetus to the markets.
- With the government almost looking likely to constitute a telecom fund to take care of the telecom AGR dues in a revenue neutral manner, it looks like the telecom issues may finally be overcome. That should be good for the markets.
- FPIs were net sellers to the tune of Rs.191 crore while DFIs bought Rs.590 crore on Wednesday. Overall transactions in the market were quite as it happened to be a bank clearing holiday in the state of Maharashtra.
- The two US indices, Dow and NASDAQ, continued to scale life time highs and even European markets were extremely bullish on Wednesday. Asia has been mixed as it still digests the impact of the virus pandemic. SGX Nifty is flat in early trades.
- We had recommended Vodafone Idea yesterday and the stock was up by 40% yesterday. With the telecom fund created, you can expect momentum in the stock to sustain up to the price Rs.7 on the upside.
- Another proxy to the telecom story one can look to buy is Bharti Infratel, which had corrected sharply in the last few weeks. Look to buy the stock in the range of Rs.220-222 for targets of Rs.265 on the upside in one quarter time frame.
- With mounting losses on its US steel plants and the legal wrangles over duty drawback on imports, JSW Steel is likely to face pressure in the US. Sell the stock around Rs.285 for lower targets of Rs.250 in one month time frame.
- Markets may be cautious on Thursday being options expiry and also being a long 3-day trading weekend coming up.
