• On a day when the Nifty closed almost flat, the A/D ratio improved sharply in favor of the advances. This can be largely attributed to short covering in a lot of counters on weekly options exercise on Thursday.
  • With a long weekend coming up and a truncated weekend and annual closing coming up this month, markets are likely to be tepid to weak in the coming days. Long traders are advised to carry positions light over the weekend.
  • FIIs were net buyers to the tune of Rs.1483 crores while DFIs sold Rs. (-818) crore on Thursday. FIIs have infused over $4 billion since mid-February although the pressure of outflows appears to be significant in case of domestic flows.
  • With the BREXIT deal discussion likely to be postponed, there may finally be a consensus between Theresa May and the British Parliament. Most of Asia is up by more than 1% and SGX could face weekend pressures on Friday.
  • Apart from the short covering story, we reiterate our buy on Yes Bank. We have been long on this stock since Rs.190 levels and have now enhanced our targets for the stock from Rs.250 to Rs.320 in the next quarter.
  • It may be time to pick tech stocks after a brief correction in the last few days. The $5 billion dollar swap by the RBI will keep the lid on the rupee appreciating too much. With the dollar regaining strength, time to pick Infosys/TECHM for 20%.
  • Conservative investors can look to buy Coal India around the level of Rs.240 for a pure dividend play. Also, this stock is likely to give a larger dividend to help the government meet fiscal targets and that could be the key attraction.
  • We suggest caution being a weekend and a series of trading holidays coming up in the coming weeks. Stay on the sidelines if required.

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