- A day after Axis reported a huge loss of Rs.2188 crore, the stock was up by 6% on Friday. However, there is too much of a bet on the NPA cycle bottoming out at Axis, which appears to be quite farfetched at this point of time.
- The big pick around the Rs.345 levels could be Yes Bank in the coming week. With outstanding 29% growth in profits and total control on NPAs at close to 1%, Yes Bank looks poised to get back closer to the Rs.400 mark from here.
- FIIs were net sellers to the tune of Rs.(-759) crores while DFIs bought Rs.634 crore on Friday. FPIs have sold nearly $1 billion in equities in April and another $1.5 billion in debt during the month, showing some real risk-off flows.
- US markets were flat with most of Europe and Asia reflecting strength on Friday. For the coming week, the Indian markets will be driven more by very specific factors like the INR worries, institutional selling and corporate results.
- Axis Bank is giving a good opportunity to sell the stock at higher levels. Traders should use higher levels to start buying put options on Axis Bank and ICICI Bank and leverage on the rally of the last couple of days.
- RIL results have been broadly in line with expectations although the flat Jio profits and weaker GRM margins were a dampener. RIL could open lower on Monday but use lower levels to accumulate the stock for targets of Rs.1100.
- Oil India at Rs.231 looks substantially underpriced. More so with an attractive dividend yield of more than 5% and a pricing at a much lower oil benchmark compared to the current price. Target Rs.280-290 on the stock.
- INR could be the key factor but the markets looks good to accumulate stocks like Oil India and Yes Bank at current levels.
