- The overhang of domestic and global factors took the market down for the third consecutive day. The Sensex has now lost over 800 points in a span of just 3 trading sessions and the weakness continues to remain.
- All eyes will be on the US China trade talks as well as the final shape of the BREXIT deal. Any further deal beyond this week could cause reasonably sharp disruption in the global markets.
- FIIs were net sellers to the tune of Rs.(-467) crores while DFIs sold Rs.(-123) crore on Tuesday. FIIs have been playing on the sidelines waiting for the US-China trade talks plus greater clarity on the BREXIT front.
- US markets showed a sharp recovery on the back of the next round of shut down being prevented and hopes of a resolution to the trade war. Asia continued to be buoyant and SGX Nifty is also trading in positive zone.
- Keep an eye on steel companies like Tata Steel, SAIL and JSW Steel. An early decision on dumping duties is expected and that is likely to boost the fortunes of the steel sector. Buy with 20% upside targets.
- We once again warn all traders to be extremely cautious on Zee. The dead cat bounce is only indicative of another sharp correction that is coming in the stock and likely to take the stock well below Rs.300. Position yourself accordingly.
- After the recent fall in price, SBI at around Rs.275 once again looks an attractive bet. We suggest buying on NPA turnaround with a target of Rs.325 in the next4-5 months on the counter with limited downside risk.
- The real action on Wednesday could be outside the equity markets like in the oil prices and in USD/INR equations. Both are likely to be volatile.
