- After a week of consistent fall, the Sensex and Nifty disappointed on Monday. It was not about the levels but about the way it could not hold on to higher levels. Sensex lost close to 900 points from the peak on an intraday basis.
- Auto numbers have been weak across the board and that is likely to put pressure on all the auto stocks. Supply chain disruption from China is another challenge. Even the export numbers of Bajaj Auto have slowed due to the Chinese virus.
- FPIs were net sellers to the tune of Rs.1355 crore while DFIs bought Rs.1139 crore on Monday. FIIs have now sold over Rs.14,000 crore in equities in the last 7 trading sessions even as the risk off sentiments are playing out in the markets.
- The Dow rallied by 5% and the NASDAQ rallied by 4.5% on Monday on hopes that the Fed may consider an interim stimulus to address the problem of falling markets. This could rub off on India too with hopes of RBI intervention.
- Time to bet on a revival in the Indian markets after the sharp bounce in the US. One good way to play will be purchasing ICICI Bank at around Rs.505 for very short term targets of Rs.530 on the stock. Trade with strict stop losses.
- It is time to take a contrarian buy call on Vedanta at Rs.110 levels. With a strong dividend expected ahead of the end of fiscal and the potential acquisition of BPCL, the stock can be accumulated for targets off Rs.135 on the upside.
- Bajaj Auto may remain under pressure on the back of weak numbers for February and tepid exports growth. Look to sell Bajaj Auto around Rs.2800 mark for short term targets of Rs.2750 on the downside. Keep short term views only for now.
- The sharp bounce in the Dow and NASDAQ could have a positive rub-off on Indian markets too. However, strict stop losses are advised.
