- Domestic markets showed some enthusiasm on Thursday but global markets were cautious ahead of the impeachment motion against Trump. The president had already tweeted that such a motion could create chaos in the markets.
- Traders need to be cautious ahead of a tricky few trading days. Banking transactions will be limited on Monday and Wednesday is a trading holiday. In between there is the uncertainty of Trump and BREXIT. Trade cautiously.
- FPIs were net buyers to the tune of Rs.737 crore while DFIs bought Rs.339 crore on Thursday. The expiry concluded one of the most impressive F&O series in the last few months but sustenance will be the key.
- US markets closed weak even as most of Europe stayed robust on the back of the US Dollar index touching a 2 year high. Most of Asia is in the red on Trump impeachment worries with the Nikkei the worst hit. SGX Nifty is in the red.
- Some PSUs could be in action on expectations that the government could look to a larger privatization effort. The government has identified names to be done in two tranches and NTPC could be a good bet at Rs.116 with target of Rs.135.
- With the trade talks looking in better shape, one can look for respite in commodities. One sector to watch out for will be the aluminium space with Vedanta at around Rs.165 being our top pick with targets of Rs.200 in a quarter.
- The SEBI warning on standstill arrangements is likely to put pressure on mutual funds to either side pocket the holdings or to sell the shares. It is negative for Zee Entertainment overall one can play short with targets of Rs.255 on the downside.
- The underlying trend in trading should be one of caution as we slip into a series of banking and trading holidays. Global cues are also confusing at this point.
