- With a series of news events, the markets could be tentative. The Trump visit will be critical and the key data points during the week like the F&O expiry, the core sector numbers, auto numbers and GDP data will be closely watched.
- The sectors to watch will be telecom and pharma. Telecom has been under pressure and a telecom fund will alleviate the pressures. Pharma continues to reel under the pressure of the supply chain being disrupted by the Chinese virus.
- FPIs were net buyers to the tune of Rs.1495crore while DFIs sold Rs.699 crore on Thursday. FPIs have already infused over Rs.23,100 crore into equity and debt in the first 3 weeks of February post the monetary policy announcement.
- Most of Europe, Asia and the US markets with the NASDAQ taking deep cuts on Friday on the back of the spreading impact of the virus. The SGX Nifty is also in negative territory on the back of negative cues from global markets.
- We continue to be negative on Cipla as it is one of the worst hit due to the disruption of the Chinese supply chain. Look to sell the stock around Rs.440 for lower targets of Rs.400 in one month time frame.
- Another proxy to the telecom story one can look to buy is Bharti Infratel, which had corrected sharply in the last few weeks. Look to buy the stock in the range of Rs.220-222 for targets of Rs.265 on the upside in one quarter time frame.
- Berger Paints at Rs.570 may be offering an attractive point and is best poised to benefit from the low crude prices and the shift in the paint industry towards solutions rather than products. Target Rs.620 in one month on Berger.
- Don’t take a very long term view and traders should ideally use short stop losses and profit targets for the coming week.
