- With the Dow and the Nifty close to entering bear territory, the focus will be on whether the Indian markets can also bounce like the US and other markets. SGX Nifty, however, is showing signs of tepidness.
- For the Indian economy, the benefits of weak oil prices are likely to gradually pitch in. While the commodity stocks may remain under pressure, the direct benefits could actually accrue to the mid cap and small cap companies.
- FPIs were net sellers to the tune of Rs.6596 crore while DFIs bought Rs.4975 crore on Monday. FIIs have now sold over $9 billion across Asia ex-Japan with nearly $2 billion in India. Taiwan and South Korea saw heavier selling by FIIs.
- The US markets bounced by 5% after the president and the Fed hinted at another stimulus. Markets are expecting rates to be cut back to zero levels this year. However, most of Europe and Asia remains under pressure.
- On Monday, IndusInd Bank touched our monthly target in a single day falling to as low as Rs.889. We are now terminating our short call we had first given at Rs.1250 and we will review the position later, once there is clarity on banks.
- We have been negative on AMCs for some time now and continue to recommend traders to use every bounce to sell HDFC AMC and Nippon AMC. The problems of bad asset holdings are likely to come back to roost for AMCs.
- On Monday, we had suggested selling ONGC with downside targets of Rs.60, of which half the target was achieved on Monday itself. We stay negative on ONGC as the oil price war looks set to continue. Keep our targets at 55-60 for ONGC.
- Markets are likely to be extremely vulnerable to any news flows till the time the Yes Bank issue is satisfactorily sorted out.
