- The day was literally dominated by TCS which gained more than 5% on a single day after its extremely encouraging annual results. Despite that markets closed almost flat on Wednesday.
- With the US expanding its trade war to China to $200 billion worth of Chinese goods, there could be trouble brewing for key parameters like commodity demand as well as factory output. Trump Trade could be playing in reverse gear.
- FIIs were net buyers to the tune of Rs.636 crores while DFIs bought Rs.15 crore on Wednesday. The FII buying looks more like a one-off with the selling pressure likely to continue in the light of the worsening trade war.
- Even as European markets lost over 1.5% and the Dow lost 1%, most of Asia has been extremely positive with Shanghai showing more than 1% gains. The real test could come from how markets pan out later in the day.
- Tech Mahindra remains the one technology stock that is still available at reasonable valuation. The sector is seeing traction due to weaker rupee and the BFSI revival of TCS should also be positive for the stock. Target Rs.750.
- Keep an eye on Oil India at around the Rs.210 levels. The stock could benefit from the rising price of Brent Crude which is now closer to $78/bbl. Target Rs.250 on the stock in one quarter.
- We continue to be positive on IndusInd Bank and the 24% growth in the latest quarter profits has only reinforced the valuation of the stock. We have a 3 month target of Rs.2200 on the stock.
- Key an eye on data points like CPI inflation, rupee defence and the trade wars. Nifty may face some resistance around the 11,000 mark.
