• The selling of Friday continued on Monday as the Sensex dropped 600 points in 2 days and the Nifty closed below the 10,900 levels. A market correction was driven by oil, banking, and auto stocks.
  • The all-important trade talks between the US and China as well as BREXIT discussions will come up in the next few days. That could hold the key to the future of Asian and European markets in the coming weeks.
  • FIIs were net sellers to the tune of Rs.)-125) crores while DFIs sold Rs. (-233) crore on Monday. FIIs have infused close to $800 million already in the first 10 days of the month and that could be critical.
  • Most of Europe was more than 1% up on trade talks and BREXIT hopes. China had reacted very positively opening after nearly 1 week. The SGX Nifty is marginally in the negative but pressure is likely to continue on the Nifty.
  • With most of the inventory loses already booked in the books, it may be the right time to accumulate IOCL with an upside target of 25% from current levels. The dividend yield is also quite attractive at current prices.
  • We once again warn all traders to be extremely cautious on Zee. The dead cat bounce is only indicative of another sharp correction that is coming in the stock and likely to take the stock well below Rs.300. Position yourself accordingly.
  • DLF remains our top bet in the reality space after a fairly positive budget. With the company likely to go zero debt by March end, one can accumulate the stock at Rs.165 for targets of Rs.210 in one quarter.
  • While there could be pressure on the markets at a broad level, the real thrust could come from a rally in FMCG and IT stocks. Watch for cues.