- It was a day when the key indices dipped sharply below long term support levels. Both the indices are now down by 35% and this is only the second time in the last 25 years that the markets have dipped so sharply in such a short time.
- Private Banks continued to be under pressure with the Supreme Court order enforcing the full payment of AGR dues to the DOT. This is likely to keep the pressure on the telecom companies and the banks with exposure.
- FPIs were net sellers to the tune of Rs.4623 crore while DFIs bought Rs.4327 crore on Thursday. FIIs have now been consistent sellers over the last 35 days with a brief respite of just one day in between.
- Finally, there was some respite for the US markets. Dow and NASDAQ bounced back by nearly 2% while most of Europe was up by 1.5% during the day. Asian markets continue to be mixed even as SGX Nifty is marginally in positive.
- ONGC at Rs.60 does offer a good chance to enter the oil space at low levels. One thing likely to happen now is that the storage demand will start picking up and will continue till storage peaks. That should help ONGC. Target Rs.75 in ONGC.
- It is time to start buying into IT stocks after the sharp correction in recent weeks. Infosys around 550 makes a good buying candidate for targets of Rs.600 in one month. IT is most likely to lead the bounce as the US stimulus takes effect.
- We have been maintaining that HDFC Bank is available at around 12 times P/E, which is the lowest in recent memory. Even if you add up the telecom woes, its NPAs are still under control. Use dips to Rs.850 levels to buy the stock.
- There may be some caution in the market due to the weekend but we could now gradually see the VIX coming under control and markets bottoming.
