- Markets are likely to be under pressure due to the Kashmir faceoff and any bounce during the day should be only used to sell into this market. The undertone has become weak due to sharp political shifts.
- The sharp fall in oil prices should be positive for the paint manufacturers in India as it would translate into lower input costs. Asian Paints continues to be our top pick and we recommend buying the stock with 10% upsides from here.
- FPIs were net sellers to the tune of Rs.2,888 crore while DFIs bought Rs.2,812 crore on Friday. FPIs have begun the month of August with nearly $0.50 billion worth of selling in just the first two days of the month.
- Markets across the US and Europe were sharply lower on Friday. In fact Europe took deep cuts on fear of a no-deal Brexit and worsening trade war. SGX Nifty is also nearly 1% down and the pressure is likely to stay on.
- It is time to sell the vulnerable names in this market. With a disappointing valuation for Zee Entertainment, we could see pressure from mutual funds on offloading the stake. Trade the stock to go below the Rs.300 mark.
- Expect major corrections across metal stocks on weak China story. We recommend selling on Tata Steel and Vedanta for 10-15% downside potential in both the stocks from current level. Trade with a fortnight perspective.
- Long term investors must look to accumulate Maruti at the current price levels of Rs.5400-5500 for bounce targets of Rs.6000 in the next one quarter. Investors can also look at Eicher Motors despite the weak quarterly results.
- We are not making any fresh calls but remain short on Essel group and metal stocks and look to do value picking on Maruti.
