- Even as Germany downgraded its growth to 0.5%, China reported the growth of 6.4% in the first quarter, slightly higher than the market consensus. Also, China has reported robust growth in exports, although imports were lower.
- The statement of RBI governor on rate cuts will be seen as positive for the market. He has indicated a likely series of cuts on interest rates to synchronize the normal inflation and to boost IIP and manufacturing growth.
- FIIs were net buyers to the tune of Rs.1039 crores while DFIs bought Rs.37 crore on Tuesday. FII buying is likely to continue as markets return after a day of break before going into a long weekend. FII buying in April crossed Rs.13,000 crore.
- On a day when the Indian markets were shut, the European and Asian markets were buoyant. The SGX Nifty is slightly cautious ahead of the long weekend and trading may be flat to negative on Thursday. Friday is again a trading holiday.
- With most FMP investors likely to opt for rolling over the FMPs, the onus will be on the Zee group promoters to rectify the situation. It is unlikely to happen at this price and lower prices would hit collaterals. It is a disadvantage, Zee. Stay Short.
- With the immediate challenges on the trade war front and the BREXIT likely to take a back seat, it is time to start picking Bharat Forge at the current price of Rs.513 for upside targets of 590 in one quarter.
- Keep an eye on Axis Bank. If the deal with Max Life goes through then the stock could get positively re-rated. We have an upside target of Rs.850 on the stock in one quarter. Traders can position themselves accordingly.
- Markets are likely to be mixed on Thursday being the last trading day of the week. The China growth factor should be sentimental positive.
