- It was largely weak cues in global markets that led the Nifty to close exactly at the 10,600 mark. Traders were cautious ahead of 2 clearing holidays this week and FIIs were also cautious which was evident from the cash market selling.
- As we had mentioned in the Wednesday morning report, the tech heavy weights like Infosys and TCS were the worst hit as they reacted to the heavy selling in NASDAQ stocks in the last few days.
- FIIs were net sellers to the tune of Rs.(-1652) crores while DFIs bought Rs.656 crore on Wednesday. The FIIs have been a bit cautious that the sharp fall in oil could impact energy stocks and also hint at a global slowdown.
- There was a sharp rebound in Europe as there appeared to be some exit route for Theresa May on BREXIT. US tech stocks also showed bounce but the SGX Nifty was showing signs of uncertainty ahead of the long week end.
- We see IndusInd Bank at around the 1550 levels with most of the IL&FS risks factored into the stock. We see an upside potential of up to Rs.2000 on IndusInd as growth and asset quality remains largely intact.
- Higher risk investors can look at Dewan Housing around the Rs.235 levels as the company is rapidly restructuring its loans and putting its liquidity situation in order. Also, the P/E of just around 5X gives comfort on the stock.
- We continue to stay on Yes Bank as the intermediate liquidity problems get addressed and there is likely to be clarity on the top management issue soon. Buy with target of Rs.250 in one quarter.
- While markets are likely to be under pressure, most traders could stay light ahead of 3 holidays over the week end.
