- The worries over the Chinese Corona virus continued as the Nifty lost a little less than 400 points in the last 7 trading sessions. The concerns over the revenue / expenditure mismatch in the budget is also worrying markets.
- Most metal companies remained under pressure on Tuesday after China showed distinct signs of slowing down and that raised concerns about metal demand. This has opened up further downside risks for metal and mineral companies.
- FPIs were net sellers to the tune of Rs.1358 crore while DFIs bought Rs.712 crore on Tuesday. With rising concerns over budget economics and the Chinese virus, there has been an overall selling across most emerging markets.
- Most markets picked up on Tuesday after the US staged a smart rally on Tuesday and was supported largely by tech stocks. UK also rallied just 2 days ahead of BREXIT even as EU markets rose. SGX Nifty is trading in the positive.
- The metal stocks could continue to be under the scanner after the scare in China has resulted in fears of a metals slowdown. We continue selling on Vedanta at around Rs.150 levels for lower targets of Rs.130 in one month time frame.
- We see HDFC as a safe and defensive bet due to the hidden value of its listed and unlisted group companies. We suggest buying around Rs.2420 for targets of Rs.2600 in one month time frame on the stock.
- Maruti could make a good short term trade around the Rs.7000 levels for targets of Rs.7200 in one month time frame. This is more likely on the back of better input cost management and also the price hikes announced recently.
- Apart from the budget gaps, the Chinese pandemic will continue to be an overhang on the markets.
