- The Nifty was strong on Monday despite weak cues from the global markets and the SGX Nifty. However, it did face resistance at levels of 10,600 and closed below that level as technology stocks gave away their gains from higher levels.
- The sharp rise in global yields in the aftermath of the US debt surge will be the key driver for Indian markets on Tuesday. The SGX Nifty is showing pressure and the Indian markets could also come under pressure on the Yields story.
- FIIs were net sellers to the tune of Rs.(-259) crores while DFIs bought Rs.387 crore on Monday. FPIs could accentuate their selling in the aftermath of the rising bond yields on Tuesday.
- Most of Asia has come under pressure due to the sharp rise in bond yields as the US could be seeing a deluge of debt in the coming months. The SGX Nifty is partially weak but the trend could be clearer in later trades.
- Tuesday could be a sharply negative day for aluminium stocks like Nalco, Hindalco and Vedanta as the global prices have crashed by nearly 9.5% due to the US softening its sanctions on Rusal, the Russian aluminium producer.
- Tech stocks have outperformed in the last few days and trades would do well to unwind their long positions. The rupee weakening story appears to have already played out on the IT stocks in India.
- We expect the results of HDFC Bank and IndusInd Bank to have a positive impact on the stock prices. Safe traders can look to buy both these stocks with 15% upside targets from current levels.
- The trading on Tuesday will be driven by the global rise in bond yields and the Rusal sanctions. Markets may face resistance at higher levels.
