- Even as the SGX Nifty shows signs of a positive bounce, the global market trend will remain an overhang as the markets resume the week after a 7% correction and nearly Rs.12,000 crore in FIII selling in equities in the last week of February.
- The major focus will be on auto stocks with most of the auto stocks showing larger than expected fall in monthly YOY sales. Apart from Maruti, the numbers could keep most of the other auto stocks under pressure.
- FPIs were net sellers to the tune of Rs.1429crore while DFIs bought Rs.7621 crore on Friday. Domestic institutions infused over Rs.11,000 crore in the last two days even as FIIs continued to sell heavily in the equity markets.
- Friday was a day when the Dow Jones and NASDAQ showed a late bounce even as European markets were down by more than 3%. In Asia, Taiwan and Singapore are in the red even as SGX Nifty, Nikkei and the KOSPI are trading in the positive.
- Even as Nifty watches look for 11,000 levels, keep an eye on accumulating Maruti on each dip. The stock makes a good buy at Rs.6290 levels for targets of Rs.6500. The monthly sales have been very competitive in a tough month.
- It is time to take a contrarian buy call on Vedanta at Rs.110 levels. With a strong dividend expected ahead of the end of fiscal and the potential acquisition of BPCL, the stock can be accumulated for targets off Rs.135 on the upside.
- With weak monthly numbers, we stay negative on M&M and recommend selling the stock at around Rs.460 levels for downside targets of Rs.440. One can also look to sell Tata Motors on every bounce considering the pressure from China.
- Traders must be cautious as the overhang of the Coronavirus will linger for some more time. Trade with shorter stop losses and profit targets.
