- On the back of weak HCL Tech results, the IT stocks came under pressure which led the markets down. The markets could face further pressure if the Nifty is unable to breach the 10,700 levels decisively on the upside.
- Yesterday, we had warned about the downside risk in aviation stocks. While Indigo did bounce from lower levels, the falling spreads in the aviation business means that every rise should be used to sell these stocks.
- FIIs were net sellers to the tune of Rs.(-149) crores while DFIs sold Rs.(-579) crore on Thursday. While the Fed status quo may be good news, the hawkish tone does indicate a possible rate hike in the month of June 2018.
- Global markets across the US and Europe came under pressure on Thursday on the back of a hawkish Fed tone. In fact, Asia corrected sharply on fears of currency vulnerability. SGX Nifty is also hinting at a weak start to trade on Friday.
- We continue to be negative on Axis Bank and ICICI Bank on fears of worsening asset quality and suggest using every bounce in these stocks to either short sell or buy put options on these stocks. They may be headed much lower from here.
- MFIs have gathered steam in the last few days and Equitas could be a good buying bet at the current price of Rs.170. The stock looks poised to touch the Rs.210 mark in the next one month.
- L&T could be the next big pick of the year after its sale of its E&A business to Schneider and a much bigger potential for its hydrocarbon infrastructure business. We expect the stock to veer towards the Rs.2000 mark during the year.
- Markets are likely to be cautious in the light of the Fed guidance. Traders are advised to wait for lower levels to buy into the market.
