- Global markets came under pressure on Tuesday after they reacted to a purported slowdown in growth in China. As Indian markets return after a 1-day break, this is likely to heavily weigh on the market sentiments.
- The realty sector could attract interest today after Anurag Thakur from the Ministry of Finance hinted that the next round of reforms package could largely focus on the ailing realty sector in India. Eye on Prestige Estates and Sobha.
- FPIs were net sellers to the tune of Rs.188 crore while DFIs bought Rs.686 crore on Monday. FIIs have continued to be prolific sellers across Asia and that cautious EM sentiments are likely to continue in the markets for now.
- While the slowdown did weigh on the markets in early trades on Tuesday, the proposed stimulus by China is what is keeping the markets excited. The market buoyancy is specifically robust in the emerging Asian markets including SGX Nifty.
- After the additional spectrum charge announcement, we are cautious on Bharti and expect negative impact on the stock. Traders can look to sell the stock at Rs.358 for downside targets of Rs.335 and 325 in the next few days.
- One can look at a contrarian buy on BHEL with all the accretions it has seen to its order book. At Rs.50, the downside risk is quite limited and one can look to buy with upside targets of Rs.70 in one quarter.
- High risk traders can look to buy Yes Bank at Rs.63 with a short term target of Rs.85 with stop loss at around Rs.57. The bank is likely to benefit from the recent stake sale which has been intimated to the stock exchanges.
- The China stimulus may give some room for hope but in the absence of fresh buying, the markets may face pressure at higher levels.
