- On Tuesday the Nifty breached the psychological 12,000 mark and despite multiple attempts to bounce back, the Nifty closed below that level. This level will be critical in the next few days as Friday is a trading holiday.
- The decision by the government not to invoke the bank guarantee of Vodafone Idea must come as a relief for the company. A lot will now depend on how the payment phasing is handled between the company and the DOT.
- FPIs were net sellers to the tune of Rs.74 crore while DFIs sold Rs.309 crore on Tuesday. Institutional investors may continue to remain tepid on Wednesday being a bank holiday in the financial capital of India.
- There was some bounce in the Asian markets even as most of Europe remained under pressure on Tuesday. The SGX Nifty is in the positive in early trades and well above 12,000 as the telecom mess shows signs of being sorted out amicably.
- Adventurous traders can look to buy Vodafone Idea where there little downside risk with the stock quoting at Rs.3. Traders can target upside levels of Rs.4.50 to Rs.5 as the news about DOT not invoking bank guarantees gets digested.
- We have been talking about Coal India being a good dividend yield play for a long time and at Rs.172 the downside risk on the stock is minimal. One can bet on a revival in output and in price to Rs.200 in the next one quarter.
- In the midst of the chaos in the market, Infosys still remains our safe bet and traders can look to buy at Rs.795 with target of Rs.850 in one quarter. At P/E of 20, the downside risk on the stock is very low.
- Markets may be a little cautious this week due to banking holiday on Wednesday, option expiry on Thursday and trading holiday on Friday.
