- The sharp correction in the markets was largely driven by the Chinese virus syndrome and that had spooked the Sensex which corrected over 450 points. That is likely to continue to put pressure on the markets.
- All eyes will now be on the Union Budget to be announced on Saturday. The government has a tightrope walk as it needs to give tax sops and the revenues are already under strain. That will be the thing to watch out for.
- FPIs were net sellers to the tune of Rs.439 crore while DFIs bought Rs.10 crore on Monday. Most India dedicated funds have been seeing heavy selling in the last few months and that appears to be rubbing off on the markets.
- The Corona Virus in China appears to be taking a heavy toll as markets now fear a growth slowdown. US and European markets were down by nearly 2% each even as most of Asia, including SGX Nifty, is under pressure.
- The metal stocks could continue to be under the scanner after the scare in China has resulted in fears of a metals slowdown. We suggest selling on Vedanta at around Rs.150 levels for lower targets of Rs.130 in one month time frame.
- We have reached our first lower target of IndusInd Bank at Rs.1275 but continue to be cautious on this bank and lower our target price for the stock to Rs.1150 with a 3 month time frame. Traders can continue to sell on every rise.
- Adani Green Energy has corrected from a high of Rs.247 to Rs.195 and makes a good prospect to buy considering the big plans the company has for solar and alternative energy in India. We target Rs.250 on the stock in one quarter.
- The progress of the Virus in the next few days could hold the cue even as budget hopes could give some support to the Indian markets.
