- Wednesday was largely marked by aggressive short covering of positions as most traders preferred to stay light ahead of trade talks between the US and China. Autos and banks saw maximum short covering on Wednesday.
- Oil prices fell sharply on Wednesday on the back of US hinting that they may offer some concessions to Iran on the sanctions front. Lower oil prices should eventually favour Indian markets in the form of lower cost of inputs.
- FPIs were net buyers to the tune of Rs.267 crore while DFIs bought Rs.1132 crore on Wednesday. It was a rare occasion of FII buying on Friday but the market uptrend was largely driven by short covering.
- The US and European markets were buoyant on Wednesday on the back of trade talk progress and likely concessions for Iran. The Scottish Court judgement on BREXIT may also give more time to UK. SGX Nifty was also higher.
- 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.
- We are just retaining our calls for the day considering that activity would be lean in the biggest market on Thursday, despite weekly settlements.
