- The Nifty closed to the 10,850 mark after the Trump-Kim deal raised hopes that the geopolitical risk in Asia would be largely reduced. Markets are likely to maintain the positive sentiments in the short term.
- With Sun Pharma Halol Plant getting the FDA go-ahead, it is likely to turn the tide for pharma. We have been talking about a turnaround and we do believe that the worst may be over. Start buying selectively.
- FIIs were net sellers to the tune of Rs.(-1169) crores while DFIs bought Rs.1327 crore on Tuesday. FII selling is likely to continue although the domestic buying will more than compensate for the same.
- Markets across Europe and Asia were flat were the US partly celebrated the Trump-Kim deal. SGX appears to be under some pressure although the Asian security situation should hold in good stead.
- We suggest traders start bottom fishing in pharma stocks with special focus on stocks like Sun Pharma, Lupin and Reddy Labs. One can also look at Aurobindo and Glenmark for one quarter trades.
- With the government moving rapidly on rescuing PSU banks, the tide may be turning for the non-PCA banks. Keep a positive eye on banks like PNB, BOB and the better performing banks like Indian Bank for upsides from current level.
- With the government likely to farm out more defence orders in the next 1 year and a greater focus on domestic production, BEL after its correction, may be the stock to pick. We suggest buying for targets of Rs.150.
- The underlying trend is positive and we see the Nifty getting back above the 11,000 mark during the current month.
