- Markets are likely to be volatile ahead of the F&O expiry on 25th July but with substantial short positions built up in the stocks post the budget, one can surely look forward to some short covering in the second half.
- Yes bank will be back in focus today with nearly Rs32,000 crore worth of debt of Yes Bank downgraded between 1 and 2 notches by ICRA. The stock is likely to remain under pressure and one can look at selling for 20% downsides.
- FIIs were net sellers to the tune of Rs.1394 crore while DFIs bought Rs.2140 crore on Wednesday. FIIs have now sold over Rs.13,000 crore worth of equities since the Union Budget was announced on concerns over FPI tax incidence.
- UK markets remained unsteady ahead of the new October 31st deadline set by Boris Johnson to wind down the EU relationship. Markets are not too pleased at the aggressive anti-EU rhetoric adopted by the new UK prime minister.
- The penalty of Rs.3200 crore on Bharti and Vodafone is likely to be negative for the valuations of Bharti. We suggest selling the stock in the range of Rs.335 to Rs.340 for downside targets of Rs.300 on one month.
- Indiabulls Housing should again be a good pick at around the Rs.610 levels with limited downside risk and upside potential of around Rs.700. However, a stop loss below Rs.590 would be a safer proposition.
- Notwithstanding good results, any bounce in Zee should be used to sell out of the stock. One can also look at selling the stock at around the 365/370 levels for first downside target of Rs.325 as the September deadline approaches.
- Markets could see short covering in the second half of the day and result in a positive closing for the Nifty and the Sensex. Position accordingly.
