- The 1031 points crash in the Dow could rub off in the week on the Indian markets too. Being expiry week, there could be aggressive offloading in the next couple of days, something traders need to be wary about.
- Metals could continue to be under pressure on Tuesday after there were clear indications that the slowdown in China could constrain demand for most of the metals and metal prices could dip sharply from these levels.
- FPIs were net sellers to the tune of Rs.1161crore while DFIs bought Rs.516 crore on Monday. FPIs across the world were playing risk-off and staying away from emerging markets in favour of more stable asset classes.
- It was a virtual Black Monday markets with the Dow closing nearly 1031 points lower. Most other markets including NASDAQ, FTSE and DAX saw deep cuts to the tune of over 4%. SGX Nifty is in the black in early trades on Tuesday.
- We expect the sell-off in metals to extent with Tata Steel, JSW Steel and Vedanta most vulnerable. We also have a sell call on JSW and suggest selling into Vedanta and Tata Steel also with 10-15% downsides from current levels.
- Things could just about get worse for Aurobindo after the original order of November got rescinded. Use bounces in the stock to sell for eventual targets of Rs.450 on the stock, followed by Rs.425 on the lower side.
- Berger Paints at Rs.565-570 may be offering an attractive point and is best poised to benefit from the low crude prices and the shift in the paint industry towards solutions rather than products. Target Rs.620 in one month on Berger.
- While early trades show a bounce, be wary of F&O expiry offloading pressure on the markets on Tuesday and Wednesday.
