- The markets opened weak on Thursday but there was hectic covering in the last hour and the markets only marginally in the negative. The markets reacted positively to the sharp fall in oil prices and strength in the rupee.
- The lower PMI Manufacturing number and the Finance Ministry warning of lower GDP in the fourth quarter are likely to be an overhang on the stock on Friday. Also, the last day of a truncated week could see very light action in the market.
- FIIs were net buyers to the tune of Rs.598 crore while DFIs sold Rs. (-792) crore on Thursday. While the FII action has been slower in the last few days, one will have to keep an eye on the DFI flows which have been volatile.
- Markets across the US and Europe continued to be under pressure on Thursday after the Fed disappointed by not giving a dovish stance. Indonesia is sharply down but that is more due to oil weakness. SGX is flat in early trades.
- We hold on to our negative view on Zee and Jet Airways and believe that the pressure on mutual funds not to act as banks is likely to put them under severe strain. We see sharp downsides in both the stocks.
- We suggest buying Britannia at lower levels after the correction as the quarterly numbers were positive in a tough market. We expect 15% upside on the stock from the current levels of the stock.
- For those of you who are looking at a strict speculative trade, you can look at 63 Moons at the price level of Rs.125. With the merger with NSEL quashed by the court, the stock should see its biggest overhang removed. Strict stop loss at 110.
- Friday is the last day of a truncated week could see further pressure on the markets. Traders are suggested to trade cautiously.
