- After 4 days of correction, the Nifty and the Sensex showed a small revival on hopes that the trade talks between the US and China may finally resume and global growth may come back. Oil prices shot up in response.
- The NBFC menace appears to be hitting the vulnerable hard with Indiabulls Finance and DHFL the worst hit. We suggest value buying in Indiabulls Housing Finance as the company offers value for money at these levels.
- FIIs were net buyers to the tune of Rs.31 crore while DFIs bought Rs.181 crore on Tuesday. Most institutional buyers are waiting for the Union Budget direction before committing funds into the market.
- There was a sharp rally across the US and Europe. While US markets gained on trade talk expectations, the EU markets celebrated the ECB chairman underlining that liquidity infusion would continue till inflation came to higher levels.
- It is time to stick to quality in each sector, especially vulnerable sectors like the NBFC space. Buy Bajaj Finance at current market price for an upside target of 20% from here in sync with the growth in consumption.
- We see Coal India as a good defensive bet which is also offering a good dividend yield at current prices. The company also posted handsome growth in profits in the fourth quarter. One can buy at 260 with targets of Rs.320 in one quarter.
- It is time to be cautious on vulnerable stocks and stocks like ADAG group, Jet Airways, DHFL, IndusInd Bank and Yes Bank must be sold in this market. Strength is unlikely to come from these quarters.
- Current account number could hold the key as could the Fed rate decision that is expected to be announced late on 19th June. Trade accordingly.
