- Nifty sailed higher close to the 10,750 mark as the Korean truce after a gap of 70 years led to frantic buying in frontline stocks on expectations that the geopolitical risk in the region should subside in a big way.
- The focus on Wednesday will be on 2 stocks. Kotak Bank is likely to now inch towards the Rs.1400 mark on sharply lower NPAs even L&T is likely to get closer to the 1700 mark on the back of the $2.1 billion sale of E&A unit to Schneider.
- FIIs were net sellers to the tune of Rs.(-385) crores while DFIs bought Rs.262 crore on Monday. FPIs may turn marginally positive on whole of Asia after the Korea truce as Nifty is back to trading after a 1 day holiday on May Day.
- Most Asian markets, except Japan, were shut on account of Labour Day but the positive impact of the Korean truce took Asian markets higher by over 1%. Despite weakness in NASDAQ and Dow, Europe fared better. SGX Nifty is flat.
- Yes Bank continues to be our big trading idea for the day with targets of 395-400 in 10-15 days time. The 29% growth in profits and sharply lower NPAs is likely to hold the stock in good stead in the coming weeks.
- We have been talking about buying Aditya Birla Capital as an underpriced stock since Rs.154 levels. Even at 160, the stock does look attractive with a short term target of 190-195 in 1 month’s time frame.
- With a clear breakout exhibited by IRB Infra, we see the stock inching up past the Rs.300 mark in the month of May. Traders can look to selectively buy this stock at every dip as the stock may continue to be volatile.
- As long as the Nifty holds the 10,700 mark, we suggest traders to hold on to long positions. Focus on Kotak Bank and L&T for Wednesday trades.
