- After the brief respite on Tuesday, global markets again crashed on Wednesday with the Dow losing more than 6%. Markets now fear the rapid spread of the Coronavirus across large swathes of Europe and the United States.
- While there has been some hope in the Yes Bank progress, the overall sentiments continue to be negative. The SGX Nifty has already reacted to the US crash hand is down nearly 400 points in early trades. 10,000 will be the key level for Nifty.
- FPIs were net sellers to the tune of Rs.3515 crore while DFIs bought Rs.2835 crore on Wednesday. FIIs have now sold close to $2.5 billion of equities since the beginning of March, the sharpest sell-off in such a short span of time.
- The US markets were down nearly 6% but the real worry is that the SGX Nifty has already dropped below the 10,000 mark in early trades. That clearly puts the indices into bear territory, if it sustains longer in this range.
- The one stock that investors can look at as a dividend yield play is Coal India at Rs.165 with targets of Rs.190. Buying in this market is tough but strong dividend yield stocks can be your best bet.
- We expect the pressure on Tata Motors to continue for now. Use bounces around the Rs.100 levels to sell the stock with downside targets of Rs.80. The JLR numbers and the falling EBITDA will continue to be an overhang on the markets.
- We had suggested selling ONGC around Rs.105 and would suggest taking profits around Rs.71 as the risk-reward could move in favour of ONGC if the oil prices recover. It may still be too early to start buying into ONGC without triggers.
- The level of 10,000 could be critical and if the Nifty holds below that level then we could official be in bear territory.
