- Caution prevailed in the markets as the Nifty once again inched nearer to the 12,000 mark. Apart from oil companies, pharma companies were among the major losers on Monday on fears of supply chain disruption in China.
- The AGR settlement is likely to impact the market sentiments on Tuesday. While Bharti has paid Rs.10,000 crore, Vodafone has paid just Rs.2500 crore against its stated dues of Rs.53,000 crore. That could be the stock to watch out for.
- FPIs were net sellers to the tune of Rs.374 crore while DFIs sold Rs.154 crore on Monday. However, FPIs have been aggressive buyers in debt and equity in the month of February, necessarily in that order, infusing close to $4 billion.
- The US and European markets were mildly in the positive but the real pressure was visible in the Asian markets on Tuesday morning. Markets across Asia are in the negative and the SGX Nifty is also trading in the negative zone.
- With crude prices weak and post the sharp fall in the profits in the December quarter, we expect ONGC to remain under pressure. We suggest selling ONGC at around Rs.100-105 range for targets of Rs.80 on the lower side.
- Keep an eye on Bharti Airtel as that looks the best poised to benefit from a likely duopoly in the telecom space. With Rs.10,000 crore already paid, look to buy Bharti around 565 levels for targets of Rs.630 in one quarter on the upside.
- With the pharma supply chain getting disrupted by the Chinese virus and inventories dwindling, Sun Pharma may be a sell candidate. Look to sell Sun around Rs.410 for targets of Rs.380 on the downside.
- A lot will depend on how stocks react to the telecom order on Monday and the next steps taken by DOT and the government on the telecom issue.
