- Markets will be returning after a 3-day trading break and in the aftermath of a 6 day rally till Friday. This is a truncated week with a likely bank strike on Tuesday and hence volumes may be slightly tepid ahead of the festive weekend.
- The all important counting of the Maharashtra and Haryana assembly polls will happen on 24th October but the early indications from the exit polls point to a decisive NDA victory. Markets will view this as a vote for reforms.
- FPIs were net buyers to the tune of Rs.37 crore while DFIs bought Rs.587 crore on Friday. The period ahead of Muhurat trading on Sunday is expected to be largely tepid in terms of flows, but could pick up from next week onwards.
- Markets across the US and UK were nearly 1% higher on Monday. Most of Asia is flat to positive on Tuesday but SGX Nifty is showing a 50 bps correction but that could more a reaction to the sharp fall in the price of Infosys ADR on Monday.
- Infosys is the stock to watch out for and despite the recent whistle blower concerns, we continue to be positive. Those who are long should hold on and use dips to accumulate more of the stock at lower levels.
- Zee results were a big disappointment with the Rs.171 crore write off on its group loans raising serious issues of corporate governance. One can look to sell the stock around Rs.260 for downside targets of Rs.225/205 in one month time frame.
- We had recommended taking exposure in Indiabulls Housing around the 170 levels. Traders can take profit off the table at around Rs.230 as a large part of the rally was led by short covering. It is better to wait in the sidelines.
- The week is likely to see tepid volumes although the Muhurat trading on Sunday could see some positive sentiments in the market returning.
