- The Nifty on Monday closed near to the 12,000 mark as the Chinese virus scare continued to hit the markets in a big way. Most of the auto and metal companies came under pressure on Monday.
- With weak auto numbers for January, the problems with the auto sales are only likely to worsen in the coming months as the festival blip appears to be over. We stay cautious on M&M, Maruti and Hero Moto at current prices.
- FPIs were net sellers to the tune of Rs.185 crore while DFIs sold Rs.736 crore on Monday. FIIs have been largely silent with the virus scare forcing most of the foreign investors to go slow on emerging markets across Asia.
- In the midst of weakness across global markets, the NASDAQ showed a sharp bounce on Monday. The SGX Nifty is trading in positive territory in early trades even as Asia continues to be mixed due to the uncertain impact off the virus.
- This is a market to buy into strength and one can seriously look at buying into stocks like Infosys at a time when the rupee is under pressure. One can start accumulating Infy at around Rs.770 for targets of Rs.830 in one month.
- Value diggers should look to buy Coal India at around Rs.183 because with a strong dividend yield of 7-8% makes the stock extremely attractive. One can target Rs.230 on the higher side with a 3 month time frame.
- GIC Re posted a huge loss on Monday and that would put the stock under pressure. One can look to exit the stock around Rs.270 levels and re-enter the stock at lower levels of around Rs.230.
- The pandemic will continue to dictate terms for the market but the rupee and the Indian markets could see some recovery on Tuesday.
