- The Nifty closely flat after the specific stocks like ICICI Bank and Axis Bank held the Nifty up. The advance/decline ratio was negative at 22:28 as most mid-cap stocks and debt vulnerable stocks continued to take a hit. Fed held on to rates.
- Traders are advised to be cautious on ICICI Bank. The indictment of the former CEO could open up large problems. Also, the quarterly results were disappointing on the growth front and on the Gross NPAs front. Use rises to short the stock.
- FIIs were net buyers to the tune of Rs.130 crores while DFIs bought Rs.502 crore on Wednesday. With the Fed keeping rates on standby, for now, the FPIs may have reason to go risk-on in search of higher returns. Indian markets could benefit.
- US markets celebrated the status quo on rates with a sharp rally in the Dow and the NASDAQ. The whole of Asia is trading in positive territory and even the SGX Nifty is showing gains of nearly 1% in early trades.
- There has been a lot of debate over the Zee stock. We have been negative on the stock since the levels of 450 over serious corporate governance issues. Any bounce in the stock should only be used to sell the stock.
- Another stock to sell on every bounce is ICICI Bank. The Chanda Kochhar reflects the larger problem with the bank. If ETFs choose to sell on corporate governance concerns, it could be a much bigger problem.
- We expect Tata Steel to bottom around the current levels as the Chinese stimulus that is proposed to boost growth is expected to help all metal companies. Target a price of Rs.550 on Tata Steel in one quarter.
- The Fed status quo will be a positive boost for the markets. However, there is likely to be cautious ahead of the interim budget on February 01st.
