- The positive returns during the week continue with IT stocks driving the Nifty higher on Thursday. Apart from better result expectations on IT, the INR weakening beyond the 65/$ mark is also making the IT stocks attractive.
- We expect this quarter ended March to be negative for pharma and telecom stocks. One can start building select short positions via futures in stocks like Sun Pharma, Lupin, Bharti Airtel, Idea etc.
- FIIs were net buyers to the tune of Rs.369 crores while DFIs sold Rs.(-616) crore on Thursday. We expect FPI confidence to return if the trade war and the global war fears subside at least temporarily.
- With the trade war fears receding, the Dow and the NASDAQ were up by over 1% in early trades. While European markets were higher, most of Asia ended in negative territory. The positive momentum in SGX Nifty could continue.
- We have been warning about caution in metals. The bounce in Hindalco was more due to the US sanctions on Rusal of Russia. However, with trade war likely to sustain over a period of time, metals could come under pressure. Trade short!
- With the stock of Zee Entertainment correcting from higher levels, the stock looks eminently poised to benefit from the positive turnaround in media performance. One can look forward to a 15-18% upside potential in Zee…
- With the summer season coming up, Havells could be a good play on the convergence of consumer demand and GST. Look to buy Havells around 545 levels for target of 575 in 1 month time.
- We suggest caution on OMCs due to subsidy burden and on metals due to trade war prospects. One can look to accumulate Havells at these prices.
