- The market gave away gains with a sharp correction in the Bank Nifty as fears of a possible rate hike on 6th June took precedence. RBI may be compelled to hike rates to curb inflation and to stem the fall in the rupee value.
- Most private banks are quoting at rich valuations and they could be the key short plays tomorrow also. The pressure is likely to be seen on richly valued banks like HDFC Bank, Kotak and IndusInd Bank on Tuesday.
- FIIs were net buyers to the tune of Rs.2,354 crores while DFIs sold Rs.(-712) crore on Monday. Most of the buying was seen HDFC Bank where the SEBI had permitted FIIs to increase their stake.
- Markets across the US, Europe and Asia performed very well on Monday after the US jobs data came in much better than expected. The SGX Nifty is still cautious ahead of the policy meet outcome on 06th
- We expect some of the NBFCS to come under pressure if the RBI hikes rates. Expect pressure on stocks like Bajaj Finance, M&M Finance, L&T Finance and select HFCs like LIC Housing and DHFL. Trade these stocks accordingly.
- After the stellar numbers for the month of May, Maruti may resume its uptrend beyond the 9500 mark. One can look to buy near the 8700 mark with target price of 10% upside in one quarter.
- Value diggers can look to buy Lupin at the current level of Rs.770. To begin the benefits of a stronger dollar should accrue and that should take the stock above the Rs.800 mark. Look at it purely for a trading perspective.
- The market is likely to face resistance around the 10,800 levels and the pressure could be visible if RBI hikes rates. Trade longs cautiously.
