- The US passing a House Bill supporting the protestors in Hong Kong and indicting China for human rights excesses has not gone down well with China. Global markets are worried that this could impact the trade deal.
- The all important GDP data would be out today evening at 5.30 pm with most estimates ranging between 4.3% and 4.7%. Markets are prepared for lower GDP but anything below 4% would really shock the markets.
- FPIs were net buyers to the tune of Rs.1009 crore while DFIs sold Rs.155 crore on Thursday. The FPI buying was largely attributed to some late F&O expiry rebalancing of portfolios. GDP data could be the key input for markets.
- The US markets managed to close in the positive but markets across the Europe and Asia were in the negative due to the pro-HK resolution passed in the US. Markets are worried that China may drag its feet on the trade deal now.
- We remain positive on the metals space as either ways the China stimulus would happen sooner rather than later. Traders can look to accumulate Tata Steel at around Rs.425-430 levels for targets of Rs.470 in one month time frame.
- Biocon is a stock we had first recommended at around the Rs.230 levels. Investors can look to take partial profits around the Rs.275 levels and book the rest of the profits at around Rs.300.
- Bank of Baroda at Rs.106 may offer limited downside risk and upside potential of around 25-30%. The latest proposal to RBI to rescue the shadow banks will be a major NPA relief for the PSU banks and they are likely to actually benefit.
- The big news on Friday will be the GDP numbers to be announced in the evening with the focus more on the downside deviations in the number.
