- After a strong start, the markets panicked in the light of increasing cases of virus infections in India. The number of infected has already reached 30 and expected to go up further in the tourist destinations of Delhi, Agra and Jaipur.
- Pharma stocks are attracting a lot of interest of late due to the government imposed ban on API exports. This is likely to be sentimentally positive for stocks like Cipla and Reddy Labs and they could see a minor 10% rally from here.
- FPIs were net sellers to the tune of Rs.878 crore while DFIs bought Rs.764 crore on Wednesday. FIIs have now sold over Rs.15,000 crore in equities in the last 8 trading sessions and continue to remain sellers on the debt side also.
- There was a sharp bounce in the Dow, NASDAQ and also in the European markets. Most Asian markets are also trading in the green although the SGX Nifty is trading in the red. More cases in India maybe an overhang.
- It is time to bet on a revival of high momentum stocks that have given up a lot of their gains. Bajaj Finance and IRCTC have corrected sharply from higher levels and offer a good entry point. Look for 15-20% upsides on the stock.
- ITC has touched our long term target range of Rs.180-185. We suggest booking profits on your short positions on ITC and avoiding selling ITC any further these levels. The stock is expected to bottom around the Rs.180 levels.
- Look for some good dividend play opportunities. One such stock could be Neyveli Lignite Corporation (NLC). The stock gives more than 10% dividend yield at the current price and may be a good safe bet in the stock markets.
- The markets are now focused on the RBI to see if takes any cues from the US Fed on the rates front. Fed had cut rates by 50 bps on 03 March.
