- After losing over 400 points, the Nifty did manage to recover but the undertone globally continues to remain weak. The virus has already caused over 150 deaths and the sanctions and advisories are now gradually increasing by the day.
- The big story to watch out for would be telecom with the Budget likely to offer some leniency to the telecom companies. Telecom companies are expecting a mix of more time and waivers on penalties to make the burden lighter.
- FPIs were net sellers to the tune of Rs.1014 crore while DFIs bought Rs.1521 crore on Wednesday. FPIs have turned cautious on emerging markets post the virus pandemic and now prefer safe haven investments in the market.
- There appears to be carnage across Asia even as the US and Europe remained largely steady. Taiwan has lost more than 4% while the Nikkei has lost more than 1.5% in early trades. Even Shanghai is down 3%. That could be the overhang.
- The metal stocks could continue to be under the scanner after the scare in China has resulted in fears of a metals slowdown. We continue selling on Vedanta at around Rs.150 levels for lower targets of Rs.120 in one month time frame.
- With rating agencies reiterating the negative rating on Yes Bank, the pressure on the stock is likely to continue. We see the stock correcting lower to Rs.32 levels and traders can look to position accordingly on the short side.
- Maruti could make a good short term trade around the Rs.7000 levels for targets of Rs.7200 in one month time frame. This is more likely on the back of better input cost management and also the price hikes announced recently.
- Apart from our short call on Yes Bank, we are not making further changes to our call and will take a fresh view after F&O expiry today.
