- The Nifty bounced 200 points in 2 days even as the Sensex was up by 600 points in 2 trading sessions. There was across the board buying in banks, autos and metals, with IT the only sector on the losing side.
- Indian markets have ignored the negative implications of the Trump withdrawal of special trade status as well as the MSCI downgrade. Markets have instead focused on positive numbers on PMI and auto numbers.
- FIIs were net buyers to the tune of Rs.752 crores while DFIs bought Rs.581 crore on Tuesday. FIIs have been buying into select counters in the last few days and the MSCI shift did not really appear to deter the FIIs.
- Most of the markets across the US, Europe and Asia have been flat with the SGX Nifty staying in the green. The global trade rapprochement between the US and China should drive sentiments for global markets.
- We have been pushing Tata Motors from the Rs.150 levels and we still see further upsides till about Rs.230 on the stock. Those traders who are already holding on to the stock can hold with a rolling stop loss.
- In the midst of all the market volatility we like L&T which is the one stock to watch out for as order books have shown a distinct sign of turning around. We suggest buying L&T at Rs.1300 levels with upgraded targets of Rs.1,500 in one quarter.
- HPCL has now gained nearly 50% from the lows of October and offers an opportunity to book profits and move out. One must look at upstream oil companies like OIL at this point of time for medium term gains.
- We suggest being cautious around the 11,000-11,050 range of the Nifty as it is likely to face stiff resistance to get beyond the range.
