- Early signs in the market indicate that it could be another Black Friday like the previous week when the Dow and the Sensex had cracked sharply. Dow has again been sharply down on Thursday and that will rub off.
- For Indian markets, another worry will be the moratorium on Yes Bank. PMC Bank was a different ball game as it was much smaller. Yes Bank moratorium could create cascade effect across lenders and investors in Yes Bank.
- FPIs were net sellers to the tune of Rs.2477 crore while DFIs bought Rs.2511 crore on Thursday. Friday could see another major sell-off in weak banks like IndusInd after the shocker of moratorium on Yes Bank announced late on Thursday.
- Dow and NASDAQ were down close to 4% on Thursday while Europe was down nearly 3%. Most of Asia is already in the red as the Coronavirus widens. SGX Nifty is already quoting over 3% down and well below the 11,000 mark.
- The moratorium on Yes Bank will put pressure on another strained bank, IndusInd Bank. Sell IndusInd Bank around 1070 for lower targets of Rs.1010. If opening is gap-down, then wait for a bounce before selling.
- Another bank that is vulnerable due to its East India exposure is Bandhan Bank. Again, pressure could come from the Yes Bank moratorium. Sell the stock around 420 levels for downside targets of Rs.370.
- Look for some good dividend play opportunities. One such stock could be Neyveli Lignite Corporation (NLC). The stock gives more than 10% dividend yield at the current price and may be a good safe bet in the stock markets.
- Wait for markets to settle in the first hour of trade as there could be an initial overreaction to the Yes Bank moratorium.
