- Indian markets will function on Tuesday but will again be shut on Wednesday on account of May Day celebrations. Hence markets may remain slightly cautious on Tuesday in the midst of fairly thin trades.
- Markets may choose to remain cautious ahead of the all-important Fed meeting coming up on Wednesday followed by the rate stance. While the status quo on rates is a given, the markets will look for cues on the stance of Fed policy.
- FIIs were net sellers to the tune of Rs. (-71) crore while DFIs bought Rs.921 crore on Friday. The FIIs have infused nearly Rs.60,000 crore into equities since the 20th of February and that is likely to drive the direction of the markets.
- Markets across the US, Europe, and Asia were flat to positive on Monday. The Indian markets were shut on Monday and are again will be shut on Wednesday. The SGX Nifty is likely to trade in a range on Tuesday.
- With a series of downgrades coming on Yes Bank, we suggest long players on Yes Bank be very careful. The stock could lose value from current levels and it is best to exit the stock or buy put options on the stock at each level.
- One can look to take selective positions in Ultratech at lower levels. The company announced a stellar doubling of profits but at current valuations, the margin of safety may be limited. We suggest nibbling at below the Rs.4000 mark.
- In the light of the good quarterly results, the stock of HDFC Life may be a good buy at around the Rs.390 levels for targets of Rs.450 and later a longer-term target of Rs.550. It could be a key beneficiary of the insurance shift to private.
- The markets come back from a 3-day holiday and go into another holiday on Wednesday. Traders must avoid aggressive longs this week.
