- The 900 point rally in the Sensex on Tuesday was followed by another 350 points rally on Wednesday wiping out most of the losses of the post budget correction. The easing of the Coronavirus tensions also helped matters.
- With a likely end to the concerns over the Coronavirus affliction, the commodity stocks may see a rebound. Combined with the $174 billion Chinese stimulus, the markets look all set to give a boost to the vulnerable commodity stocks.
- FPIs were net buyers to the tune of Rs.249 crore while DFIs bought Rs.263 crore on Wednesday. Markets have been relatively cautious as is seen from the FPI buying with most of the rally coming from short covering.
- The rally continued across the US and Europe although the rally was not as strong as it was on Tuesday. The Asian markets have also reacted positively to the China story although the SGX Nifty is trading lower in early trades.
- It is time to pick up some sold metal and mineral names to play on the recovery of demand in China. Stocks like Vedanta and NMDC could show a spike of 20-25% in the next one quarter and one can position long to play these trends.
- Titan has always been a good consumer play but the latest quarter results have only underlined the inherent strength of the company. We suggest buying the stock at Rs.1270 for targets of Rs.1400 in one month time frame.
- We stay cautious on Bandhan Bank with all its attendant problems pertaining to promoter stake and its exposure to the fractured Eastern markets. One can exit at Rs.430 for lower targets of Rs.380 on the stock.
- We could see the positive momentum continue and weak oil prices should offer support to the Indian markets.
