- The Nifty and the Sensex faced pressure at higher levels as there was selling ahead of the F&O expiry day. The levels of 12,000 on the Nifty and 40,000 on the Sensex also proved to be a resistance.
- Global markets came under pressure after the US bond yields fell to 2.2% levels and the price of oil also cracked in response. The global markets had their spill off on the Indian markets too.
- FIIs were net sellers to the tune of Rs.(-304) crore while DFIs sold Rs.(-190) crore on Wednesday. The only thing to watch out for is the risk-off trade as there was a rush to buy US and German bonds in the global markets.
- Global markets across the US, Europe and Asia came under pressure after signs of a global slowdown became evident with falling yields in the US benchmark. The SGX Nifty is tepid and is likely to be under pressure on Thursday.
- Post the results and the decision to exit the NBFC and the group pharma retail model, Sun Pharma may have just about seen the bottom. We suggest buying Sun Pharma at prices of Rs.420 for targets of Rs.460.
- Despite weak results, we like Havells because most of the pressure came from the Lloyds division that Havells had acquired in the previous year. Its core electrical business is still growing and we suggest a buy with target of Rs.800.
- The sharp rise in debt levels of OMCs could be an overhang on the stocks. Unpaid subsidies alone stood at Rs.34,000 crore and that is likely to put pressure on the numbers of these OMCs. Stay short on IOCL, BPCL and HPCL.
- The F&O expiry and the cabinet formation could be major cues from here on. Keep an eye on the choice of finance minister.
