- The financials contributed to further upsides but the A/D ratio for the Nifty and for the market as a whole was negative. The next few days could be critical as the market faces global and local headwinds.
- Markets are building expectations of 50 bps cut by the RBI in August and also of an upgrade by the MSCI EM index in terms of weightage as reported by Morgan Stanley. That could be markets optimistic.
- FIIs were net sellers to the tune of Rs.17 crore while DFIs bought Rs.209 crore on Wednesday. On Wednesday, the selling in the equity markets also had a negative impact on the rupee which weakened closer to the 69/$ mark.
- There was selling across the board in global markets including the US, Europe and Asia. Most Asian markets are also weak in early trading on Thursday and the SGX Nifty is also likely to face the pressure of weekly F&O expiry.
- One can look to take a long term bet on Tata Motors considering their large bets on the EV and green auto space. Accumulate the stock in the range of 150-170 for targets of Rs.300 in one year.
- We again reiterate our short call on Zee Entertainment. We had said this even at levels of Rs.375 and reiterate at the current level of Rs.355. The stock is likely to go down to Rs.290 as the gap in funding becomes apparent.
- We reiterate our buy call on Britannia as the most defensive bet on the FMCG space with the least impact of any spending slowdown. Suggest buying the stock around Rs.2800 for targets of Rs.3100 in one quarter.
- There will be optimism on rate cut hopes but global cues are not too positive and that could weigh on the markets.
