- When the US Fed meeting concludes on Wednesday, the markets will have a clear picture of where the rates will be headed this year. 3 rate hikes are factored but 4 rate hikes could be a negative surprise for the markets.
- While the NDA government looks safe in the no-confidence motion, a lot will depend on the vote actually going through smoothly. The delay may continue to be an overhang for the stock markets on Monday.
- FIIs were net sellers to the tune of Rs.(-150) crores while DFIs sold Rs.(-771) crore on Friday. Domestic flows could be the worry and the overall picture has been negative in the month of March for the domestic investors.
- While the US and Europe held small gains, Asia came under pressure on Friday. SGX Nifty is already under pressure on the back of the no-confidence motion and the Fed meet this week. Expect SGX Nifty to be under pressure.
- It would be a good idea to focus on high dividend yield stocks for now. Stocks like BPCL, IOCL and Hindustan Zinc are more likely to hold value in volatile markets due to their attractive levels of dividend yield.
- With a global glut of 11.1 million tonnes of sugar in the world, sugar prices and sugar stocks may be in for a tough time. It is advised to exit sugar stocks for now and one can look at this sector later when the supply situation rectifies.
- Ahead of the uncertainty in the markets, we recommend playing with caution. While the no-confidence motion may not really dent the NDA, the Fed rate uncertainty could be the overhang. Avoid heavy leveraged positions.
- If the no-confidence motion on Monday goes through smoothly for NDA, one can expect a bounce in the Nifty purely for short term trading purposes.
