- The trade war led the Nifty to correct closer to the 10,700 mark and the markets may continue to be under pressure as the trade war between the US and China appears to be getting more acute by the day.
- The action is likely to shift to the OPEC meet at Vienna towards the weekend. With Russia and Saudi Arabia in favour of increasing supplies by 1.5 million bpd, a supply glut may ensure lower prices. Crude may get back below $70/bbl.
- FIIs were net sellers to the tune of Rs.(-1,325) crores while DFIs bought Rs.655 crore on Tuesday. The heavy FII selling was triggered by the view that the trade war could really hit the Indian currency.
- There have been sharp cuts across Europe and Italian bond markets continue to be a major overhang on the markets. Asia too has been weak and the SGX is almost flat at current levels. Nifty could be under pressure.
- With the Idea – Vodafone deal through, one can look at some bottom fishing in Idea around the Rs.60 levels. Look at a very short term trade on the stock with target price of Rs.75.
- With strong demand from the US market, one can again look at picking Bharat Forge at lower levels of 620-630 for targets of Rs.700 in one quarter. Stock looks poised for higher level on a upturn in demand.
- With the Kharif season setting off, one can look at stocks like Kaveri Seeds. At a price of Rs.583, the stock is reasonably value vis-à-vis peers and is also likely to benefit from the agricultural upturn cycle.
- Markets continue to be in uncertain zone and that worry may continue till the time the overhang of the trade war remains.
